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 $ 59,000 $ 114,500 Work in process inventory 411,500 565,000 Finished goods inventory 626,000 372,001 The following additional information describes the company's production activities for May Raw materials purchases (on credit) $ 290,000 Factory payroll cost (paid in cash) 1,566,000 Other overhead cost (Other Accounts credited) 62,500 Materials used Direct $ 164,500 Indirect 70,000 Labor used Direct $ 790,000 Indirect 776,000 Overhead rate as a percent of direct labor 115 Sales (on credit) $ 6,500,000 The predetermined overhead rate was computed at the beginning of the year as 115 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 Payroll Payable Finished Goods (FG) Factory Overhead Income Statement (partial)

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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

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	$	59,000	$	114,500
Work in process inventory		411,500		565,000
Finished goods inventory		626,000		372,001

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


Raw materials purchases (on credit)	$	290,000
Factory payroll cost (paid in cash)		1,566,000
Other overhead cost (Other Accounts credited)		62,500
Materials used
Direct	$	164,500
Indirect		70,000
Labor used
Direct	$	790,000
Indirect		776,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	6,500,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. image text in transcribed

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)