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 Ending Inventor $57,000 81,000 415,500 527,000 608,000 526,000 Inventory y 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 s 280,000 1,589,000 1,000 Direct Indirect $ 166,000 90,000 Labor used Direct Indirect $ 800,000 789,000 Overhead rate as a percent of direct labor Sales (on credit) 110% $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