Sierra Company manufactures woven blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. PROBLEM SET A Problem 16-1A Production cost flow and measurement; journal entries P1 P2 P3 P4 Beginning Ending Inventory Inventory Sage 50 Raw materials inventory Goods in process inventory Finished goods inventory $60,000 92,500 515,000 605,000 435,000 633,000 The following additional information describes the company's production activities for May Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other overhead cost (Other Accounts Materials used $ 250,000 1,530,000 87,000 $ 157,500 60,000 Direct Indirect Labor used Direct Indirect $ 780,000 750,000 1 1 5% $2,500,000 Overhead rate as a percent of direct labor Sales (on credit) Required 1. Compute the cost of (a) products transferred from production to finished goods, and (b) goods sold. 2. Prepare summary journal entries dated May 31 to record the following production activities during Check 1b) Cost of goods sold $1,782,500 May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) payroll costs, (e) direct labor costs, (f) indirect labor costs, (g) other overhead costs, (h) overhead applied (i) goods transferred from production to finished goods, and G) sale of finished goods