Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories.

The following additional information describes the company€™s production activities for May.

Required
1. Compute the cost of (a) products transferred from production to finished goods, and (b) goods sold.
2. Prepare summary journal entries dated May 31 to record the following production activities during May:
(a) Raw materials purchases,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Payroll costs,
(e) Direct labor costs,
(f) Indirect labor costs,
(g) Other overhead costs,
(h) Overhead applied,
(i) Goods transferred from production to finished goods, and
(j) Sale of finishedgoods.

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Beginning Ending Inventory Inventory Raw materlals Inventory. Goods In process inventory.. Finlshed goods Inventory $ 28,000 25.500 252,000 319,000 277,000 220,750 2 Raw matertals purchases (on credit) Factory payroll cost (pald in cash) ...*. . Other overhead cost (Other Accounts credited) Materlals used ..135.000 791,500 43.000 $ 93.500 31,000 Direct . indirect.. Labor used Indirect . Overhead rate as a percent of direct labor Sales (on credit) 439.500 I 10% $1,500,000 .