CU VIRGILIUI [The following information applies to the questions displayed below.) Sierra 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 Raw materials inventory Work in process inventory Pinished goods inventory Beginning Inventory $ 54,000 430,500 633,000 Ending Inventory $ 70,500 545,000 564,000 The following additional information describes the company's production activities for May $ 270,000 1.562,000 80,000 Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 175.500 78,000 800.000 762.000 1150 5,500,000 $ The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. RM - April 30 RM purchases Raw Materials (RM) 1 54,000 indirect materials 270,000 OM used 78,000 175,500 | i WIP - April 30 OM used DL used Overhead applied WIP - May 31 Work in Process (WIP) 430,500 Cost of goods manuf. 175,500 800.000 175,500 545,000 RM- May 31 70.500l Factory Wages Payable Finished Goods (FG) Factory Overhead Income Statement (Partial) 30 Cost of goods transfered Costs of goods sold