Compute the cost of products transferred from production to finished goods and cost of goods sold.

Raw Materials (RM) Work in Process (WIP) RM - April 30 60,000 WIP - April 30 435,000 RM purchases 250,000 DM used 157,500 Indirect materials 60,000 DL used 780,000 DM used 157,500 Overhead applied Cost of goods manuf. WIP - May 31 515,000 Factory Wages Payable Finished Goods (FG) Total Factory wages paid 1,530,000 FG - April 30 633,000 Indirect labor 750,000 Cost of goods manuf. DL used 780,000 Cost of goods sold FG - May 31 605,000 Factory Overhead Income Statement (Partial) Indirect materials 60,000 Sales $ 2,500,000 Indirect labor 750,000 Cost of goods sold Other overhead costs 87,000 Gross profit $ 2,500,000 Overhead applied Underapplied OH 897,000 897,000 Cost of goods transferred Cost of goods soldSierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories. Beginning Ending Inventory Inventory Raw materials inventory $ 69,696 $ 92,596 Work in process inventory 435,696 515,696 Finished goods inventory 633,696 695,696 The following additional information describes the company's production activities for May. Raw materials purchases (on credit) $ 259,696 Factory wages cost (paid in cash) 1,539,696 Other overhead cost (Other Accounts credited) 87,696 Materials used Direct $ 157,596 Indirect 69,666 Labor used Direct $ 786,666 Indirect 759,696 Overhead rate as a percent of direct labor 115% Sales (on credit) $2,599,696