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	$	55,000		$	56,000
Work in process inventory		401,500			597,000
Finished goods inventory		631,000			218,001

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

Raw materials purchases (on credit)	$	280,000
Factory payroll cost (paid in cash)		1,556,000
Other overhead cost (Other Accounts credited)		37,000
Materials used
Direct	$	213,000
Indirect		66,000
Labor used
Direct	$	790,000
Indirect		766,000
Overhead rate as a percent of direct labor		110	%
Sales (on credit)	$	4,500,000

The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost.

1.

value: 7.50 points

Required information

Required:
1.	Compute the cost of products transferred from production to finished goods and cost of goods sold.