Required information Problem 20-1A 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 Beginning Ending Inventory Inventory $ 60,00092,500 435,000 515,000 633,000 605,000 Raw materials inventory Work in process inventory Finished goods inventory 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 $ 250,000 1,530,000 87,000 Direct Indirect $157,500 60,000 Labor used Direct Indirect $ 780,000 750,000 Overhead rate as a percent of direct labor Sales (on credit) 115% $2,500,000 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) 60,000Indirect 250,000 DM used 60,0000| 157,500 |WP. April 30 435,000 RM April 30 materials Cost of goods manuf 157,500 780,000 897,000 2,269,500 1,754,500 RM purchases DM used DL used Overhead applied WIP May 31 Factory Wages Payable Finished Goods (FG) Total Factory wages1530,000 WIP - April 30 780,000G April 30 633,000 Cost of goods sold1,782,500 aid Total Factory wages paid 750,000 Cost of goods manuf.1,754,500 605,000 Factory Overhead Income Statement (Partial) Overhead 897,000Sales Indirect materials S 2,500,000 1,782,500 $ 717,500 applied labor 750,000 0 Cost of goods sold Gross profit Indirect labor Other overhead costs 87,000 Cost of goods transferred Cost of goods sold