Required information Problem 16-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 [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: Raw materials inventory Work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Beginning Inventory $ 96,000 223,500 243,300 56,100 Ending Inventory $116, 350 150, 500 116,300 14,250 The following additional information describes the company's production activities for May Direct materiala Raw materiale purchased on credit Direct materials used-Cutting Direct materials used-Stitching $115,000 26,250 Direct labor Direct laborCutting Direct labor-stitching Total factory payroll paid (in cash) $24.600 98. 400 181,600 Factory Overhead Actual costa) Indirect materials used Indirect labor used Other Overhead coats $68,400 58,600 65,000 Factory Overhead Rates Cutting (1501 of direct materials used) Stitching (1201 of direct laborused) Sales $976.000 Problem 16-1A Part 1 Repaired information Problem 16-1A Part 1 Required: 1. Compute the amount of production cost transferred from Cuting to Saching finished goods, and a cost of goods sold production costs transferred from Satching to the suctiva. Al cros 68.400 WP April 30 223.00 16.000 ret 115.000 we wan s ed t ing Work in Proces (WP Sching PA30 TIL Required: 1. Compute the amount of (a) production costs transferred from Cutting to Stitching. (b) production co finished goods, and (c) cost of goods sold. T RM - April 30E RM purchases, Raw Materials (RM) 96,000 indirect materials used 115,000 Direct materials - Cutting 68,4 6.2 T 2 RM - May 31 116,350 Work in Process (WIP) - Stitching 243,300 WIP - April 30 C of GM - Cutting Direct labor - Stitching Overhead - Stitching WIP. May 31 N 98,400 118,080 459,780 T | Factory Overhead 68,400 Indirect materials used Indirect labor used Other overhead costs N 6 5,000 133,400 Income Statement (Partial) Sales Cost of goods sold Gross profit $ 0 transferred from Stitching to WIP - April 30 Direct materials - Cutting Direct labor - Cutting Overhead - Cutting WIP - May 31 Work in Process (WIP) - Cutting 223,500 26,250 24,600 39,3751 1 313,725 i Factory Wages Payable 181,600 Indirect labor used Total factory payroll 58,600 123,000 Finished Goods (FG) 56,100 Cost of goods sold FG - April 30 . (FG - May 3 Cost of goods transferred to Finished Goods Cost of goods sold