Problem 16-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 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 BeginningEnding Raw materials inventory Work in process inventory Finished goods inventory Inventory nventory 65,00035,500 599,000 598,001 423,500 613,000 The following additional information describes the company's production activities for May Raw materials purchases (on credit) Factory payroll cost (pald in cash) Other overhead cost (Other Accounts credited) Materials used $ 250,000 1,569,000 3,000 Direct Indirect $213,500 66,000 Labor used Direct Indirect $ 780,000 789000 110% Overhead rate as a percent of direct labor Sales (on credit) $4,500,000 The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost