Income Statement (Partial) Sales 3,500,000 Cost of goods sold 1,875,000 1,81 Cost of goods transfered Costs of goods sold 1875000 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 Finished goods inventory Beginning Ending Inventory Inventory $ 51,000 $ 29,500 441,000 557,000 619,000 528,000 The following additional information describes the company's production activities for May $ 260,000 1,554,000 64,500 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) 201,500 80,000 790,000 764,000 1158 3,500,000 $ The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost