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 Ending Inventory Inventory $ 68,000 $31,000 434,000 583,000 603,000 519,000 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 $270,000 1,551,000 20,000 Direct Indirect $ 219,000 88,000 Labor used Direct Indirect $ 790,000 761,000 Overhead rate as a percent of direct labor Sales (on credit) 110% $3,500,000 The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost