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 Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) $ 250,000 1,530,000 87,000 $ 157,500 60,000 $ 780,000 750,000 115% $2,500,000