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

	Beginning Inventory	Ending Inventory
Raw materials inventory	$51,000	$55,500
Work in process inventory	441,000	593,000
Finished goods inventory	620,000	574,000

The following additional information describes the company's production activities for May.

Raw materials purchases (on credit)	$300,000
Factory wages cost (paid in cash)	1,531,000
Other overhead cost (Other Accounts credited)	66,000
Materials used
Direct	$215,500
Indirect	80,000
Labor used
Direct	$780,000
Indirect	751,000
Overhead rate as a percent of direct labor	115%
Sales (on credit)	$5,500,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

rev: 09_05_2017_QC_CS-97362

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, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.