Sierra Company manufactures woven blankets and accounts for product costs using process costing. The company uses a single processing department. The following information is available regarding its May inventories

	Beginning Inventory			Ending Inventory
Raw materials inventory	$	54,000		$	54,500
Work in process inventory		443,000			531,000
Finished goods inventory		625,000			39,001

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)		1,564,000
Other overhead cost (Other Accounts credited)		68,500
Materials used
Direct	$	193,500
Indirect		66,000
Labor used
Direct	$	790,000
Indirect		774,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	3,500,000

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.

References

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2.

Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (h) overhead applied, (i) goods transferred from production to finished goods, and (j) sale of finished goods.