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 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory 96,000 442,000 535,000 627,000 549,000 $ 54,0060 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 290,000 1,583,000 91,000 Direct Indirect $ 184,000 64,000 Labor used Direct Indirect $ 790,000 793,000 Overhead rate as a percent of direct labor Sales (on credit) 120% $5,500,000 The predetermined overhead rate was computed at the beginning of the year as 120% of direct labor cost