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 Raw materials inventory Work in process inventory Finished goods inventory Inventory Inventory $ 58,000 $ 82,000 597,000 568,000 421,000 606,000 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) Materials used 290,000 1,555,000 81,500 Direct Indirect 204,000 62,000 Labor used Direct Indirect 790,000 765,000 Overhead rate as a percent of direct labor Sales (on credit) 115% $ 5,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost