! Required information 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. Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 60,000 $ 92,500 435,000 633,000 515,000 605,000 The following additional information describes the company's production activities for May. Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Direct $ 250,000 1,530,000 87,000 $ 157,500 60,000 Labor used $ 780,000 Indirect 750,000 Overhead rate as a percent of direct labor Sales (on credit) 115% $2,500,000 Problem 16-1A Part 1 Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. > Answer is not complete. Raw Materials (RM) Work in Process (WIP) RM - April 30 60,000 Indirect materials 60,000 WIP - April 30 435,000 Cost of goods manuf. 1,754,500 RM purchases 250,000 DM used 157,500 DM used 157,500 WIP - May 31 DL used 780,000 Overhead applied 897,000 WIP - May 31 515,000