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	$	70,000		$	125,500
Work in process inventory		429,500			579,000
Finished goods inventory		611,000			521,000

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

Raw materials purchases (on credit)	$	290,000
Factory wages cost (paid in cash)		1,572,000
Other overhead cost (Other Accounts credited)		126,000
Materials used
Direct	$	172,500
Indirect		62,000
Labor used
Direct	$	800,000
Indirect		772,000
Overhead rate as a percent of direct labor		120	%
Sales (on credit)	$	6,500,000

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. Raw Materials (RM) Work in Process (WIP) Factory Wages Payable Finished Goods (FG) Factory Overhead Income Statement (Partial) $ 0 Cost of goods transferred Cost of goods sold