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Required information [The following information applies to the questions displayed below.) Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data

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Required information [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 Inventory $ 63,000 440,500 602,000 Ending Inventory $ 77.000 561,000 514,000 The following additional information describes the company's production activities for May 290,000 1,591,000 21,000 Raw materiale purchases on credit) Factory wages coat (paid in cash) other overhead coat (other Account credited Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 208.000 68,000 800.000 791,000 5.500,000 The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost. Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. Raw Materials (RM) Work in Process (WIP) Factory Wages Payable Finished Goods (FG) 1 / / / / / / / / / / / / / / Factory Overhead / I / / / / Income Statement (Partial) lol Cost of goods transfered Costs of goods sold 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, payment of factory payroll, (g) other overhead costs. (h) overhead applied. () goods transferred from production to finished goods, and (i) sale of finished goods. View transaction list Journal entry worksheet 1 1 2 3 Record purchase of raw materials. Note: Enter debits before credits General Journal Date May 31 Record entry Clear entry View general Journal

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