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 $ 63,000 415,500 611,800 Ending Inventory $ 127,500 533, eee 518,000 The following additional information describes the company's production activities for May. 290,000 1,575,000 53,500 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) 155,500 70,000 790,000 785,000 115% 5,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. Required information (RM - April 30 RM purchases Raw Materials (RM) 63,000[OM used 290,000 indirect materials + Work in Process (WIP) ( other overhead costs 155,500 70.000 | WIP - April 30 OM used DL used Overhead applied WIP - May 31 RM-May 31 127,500 t . Factory Wages Payable Finished Goods (FG) Factory Overhead Income Statement (Partial) 0 Cost of goods transfered Costs of goods sold