Ferrell scored the game's first nine points, setting the tone for the contest in which Indiana led by 21 at halftime and more than 30 in the second half.
The Hoosiers (28-6) draw ninth-seeded Temple in Sunday's third-round game in the East Region. Temple was a 76-72 winner over North Carolina State earlier Friday.
James Madison, which won a first-round game Wednesday for the right to meet Indiana, ends its season 21-15.
After Ferrell's early run, he added 5 points in 50 seconds, putting Indiana up 16-3. The Hoosiers pushed the advantage to 43-22 at halftime and 30 points -- 56-26 -- 6 minutes into the second half.
Ferrell was joined by Will Sheehey (15 points), Cody Zeller (11), Victor Oladipo (11) and Jordan Hulls (10) in double figures for Indiana.
Andre Nation popped in 24 points and Charles Cooke 18 for James Madison.
Jessica Simpson shares three-way kiss with friends in photo
Dennis Rodman pledges to end trips to North Korea