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 Ending Inventory Inventory 62,000 15,000 Raw materials inventory Work in process inventory 402,000 559.000 Finished goods inventory 618,000 506,001 The following additiona nformation describes the company's production activities for May. 250,000 Raw materials purchases on credit Factory payroll cost (paid in cash) 1,585,000 Other overhead cost (Other Accounts credited) 14,000 Materials used 209,000 Direct 88,000 Indirect Labor used 790,000 Direct 795,000 Indirect overhead rate as a percent of direct labor 110% $5,500,000 Sales (on credit) The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost