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

The following Information applies to the questions displayed below. 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 Beginning Ending Raw materials inventory Work in process iventory Finished goods inventory 55,000 406,500 634,000 $81,000 537,000 514,001 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 credited) Materials used 300,000 1,557,000 107,000 Direct Indirect $ 200,000 74,000 Labor used Direct Indirect $ 790,000 767,000 120% Overhead rate as a percent of direct labor Sales (on credit) $3,500,000 The predetermined overhead rate was computed at the beginning of the year as 120% of direct labor cost