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 Ending Raw materials inventory Work in process inventory Finished goods inventory Inventory Inventory $69,000 78,500 545,000 527,000 445,000 600,000 The following additional information describes the company's production activities for May Raw materials purchases (on credit) Factory wages cost (paid in cash) other overhead cost (Other Accounts credited) Materials used 250,000 1,542,000 90,500 Direct Indirect 174,500 66,000 Labor used Direct Indirect 790,000 752,000 Overhead rate as a percent of direct labor Sales (on credit) 115% $5,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost. Work in Process (WIP) WIP - April 30 DM used DL used Overhead applied WIP - May 31 445,000 Cost of goods m 174,500 790,000 908,500 545,000 ost of goods man Finished Goods (FG) FG April 30 Cost of goods manuf 600,000 Cost of goods sold Factory Overhead Indirect materials Indirect labor Other overhead costs 66,000 Overhead applied 752,000 908,500 Overapplied OH 90,500 Income Statement (Partial) Sales Cost of goods sold Gross proft 5,500,000 Cost of goods transfered Costs of goods sold