ierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the cutting process. The following information is available regarding its May inventories. Beginning Inventory Ending Inventory Raw materials inventory $ 26,000 $ 30,250 Work in process inventoryCutting 83,500 80,500 Work in process inventoryStitching 103,300 72,900 Finished goods inventory 28,100 16,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 45,000 Direct materials usedCutting 22,750 Direct materials usedStitching 0 Direct labor Direct laborCutting $ 17,600 Direct laborStitching 70,400 Factory Overhead (Actual costs) Indirect materials used $ 18,000 Indirect labor used 55,800 Other overhead costs 51,000 Factory Overhead Rates Cutting 150% of direct materials used Stitching 120% of direct labor used Sales $ 416,000