Required intormation [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 Inventory Inventory $ 82,500 603,000 Raw materials inventory Work in process inventory Finished goods inventory 58,000 405,500 631,000 518,000 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) S 290,000 1,558,000 48,000 Materials used Direct $ 191,500 74,000 Indirect Labor used Direct S 800,000 Indirect 758,000 110 $5,500,000 Overhead rate as a percent of direct labor Sales (on credit) The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost W Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. Work in Process (WIP) Raw Materials (RM) Finished Goods (FG) Factory Wages Payable Income Statement (Partial) Factory Overhead C Cost of goods transferred 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) 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, () goods transferred from production to finished goods, and () sale of finished goods. raw materials View transaction list Journal entry worksheet 1 4 8 2 5 7 11 Record purchase of raw materials. Note: Enter debits before credits Debit Date General Journal Credit May 31 O