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	$	55,000		$	33,500
Work in process inventory		436,000			525,000
Finished goods inventory		605,000			450,001

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

Raw materials purchases (on credit)	$	260,000
Factory payroll cost (paid in cash)		1,580,000
Other overhead cost (Other Accounts credited)		38,000
Materials used
Direct	$	219,500
Indirect		62,000
Labor used
Direct	$	800,000
Indirect		780,000
Overhead rate as a percent of direct labor		110	%
Sales (on credit)	$	4,500,000

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)