Question: Please complete correctly and i will give a thumbs up [The following information applies to the questions displayed below.) Sierra Company manufactures soccer balls in
[The following information applies to the questions displayed below.) Sierra 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 Ending Inventory Inventory Raw materials inventory $ 106,000 $ 128,650 Work in process inventory-Cutting 243,500 160,500 Work in process inventory-Stitching 263,300 122,500 Finished goods inventory 60,100 48,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 125,000 Direct materials used-Cutting 26,750 Direct materials used-stitching Direct labor Direct labor-Cutting $ 25,600 Direct labor-Stitching 102,400 Factory Overhead (Actual costs) Indirect materials used $ 75,600 Indirect labor used 59,000 Other overhead costs 67,000 Factory Overhead Rates Cutting 150N of direct materials used Stitching 120% of direct lobor used Sales $ 1.056,000 Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department
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