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 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 56,000 $ 39,000 439,500 567,000 601,000 536,000 The following additional information describes the company's production activities for May. S 270,000 1,567,000 73,000 Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 211,000 76,000 780,000 787,000 1203 3,500,000 $ The predetermined overhead rate was computed at the beginning of the year as 120% of direct labor cost. Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold. Raw Materials (RM) Work in Process (WIP) Factory Wages Payable Finished Goods (FG) Factory Overhead Income Statement (Partial) Cost of goods transfered Costs of goods sold