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 Inventory			Ending Inventory
Raw materials inventory	$	63,000		$	67,000
Work in process inventory		413,000			577,000
Finished goods inventory		609,000			194,001

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

Raw materials purchases (on credit)	$	250,000
Factory payroll cost (paid in cash)		1,543,000
Other overhead cost (Other Accounts credited)		117,000
Materials used
Direct	$	168,000
Indirect		78,000
Labor used
Direct	$	790,000
Indirect		753,000
Overhead rate as a percent of direct labor		120	%
Sales (on credit)	$	5,500,000

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.

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 Payroll Payable Finished Goods (FG) Factory Overhead Income Statement (partial)