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Required information [The following information applies to the questions displayed below.] Sterrs 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: Work in process inventory-Cutting Work in process inventory-Stitching Finished goods inventory Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs The following additional Information describes the company's production activities for May. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-Stitching Factory Overhead Rates Cutting Stitching Sales Beginning Ending Inventory Inventory $ 46,800 59,000 163,588 183,380 44,180 $ 85,000 24,758 8 $ 21,600 86,488 165,400 (158% of direct materials used) (128% of direct labor used) $736,800 120,580 97,780 32,250 Required: 1. Compute the amount of (8) production costs transferred from Cutting to Stitching. (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Work In Process (MP)-Cutting Work in Proosss (WIP) - Bohing Finished Goods (FO)