Sierra Company manufactures woven blankets and accounts for product costs using process costing. The company uses a single processing department. The following information is available regarding its May inventories

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	68,000		$	93,500
Work in process inventory		411,500			613,000
Finished goods inventory		639,000			302,001

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

Raw materials purchases (on credit)	$	260,000
Factory payroll cost (paid in cash)		1,572,000
Other overhead cost (Other Accounts credited)		37,000
Materials used
Direct	$	166,500
Indirect		68,000
Labor used
Direct	$	780,000
Indirect		792,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	3,500,000

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.

2.

Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials 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, (i) goods transferred from production to finished goods, and (j) sale of finished goods.