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	$	66,000		$	43,000
Work in process inventory		404,000			541,000
Finished goods inventory		602,000			532,000

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

Raw materials purchases (on credit)	$	250,000
Factory wages cost (paid in cash)		1,562,000
Other overhead cost (Other Accounts credited)		98,000
Materials used
Direct	$	195,000
Indirect		78,000
Labor used
Direct	$	790,000
Indirect		772,000
Overhead rate as a percent of direct labor		120	%
Sales (on credit)	$	5,500,000

Raw Materials (RM)					Work in Process (WIP)
Factory Wages Payable					Finished Goods (FG)
Factory Overhead					Income Statement (Partial)
					Cost of goods transferred
					Cost of goods sold