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	$	51,000		$	27,500
Work in process inventory		413,000			541,000
Finished goods inventory		618,000			161,001

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

Raw materials purchases (on credit)$250,000

Factory payroll cost (paid in cash) 1,561,000

Other overhead cost (Other Accounts credited) 135,000

Materials used

Direct$209,500

Indirect 64,000

Labor used

Direct$800,000

Indirect		761,000
Overhead rate as a percent of direct labor		120	%
Sales (on credit)	$	2,500,000

The predetermined overhead rate was computed at the beginning of the year as 120% of direct labor cost.

Required: Compute the cost of products transferred from production to finished goods and cost of goods sold.

record the following -purchase of raw materials direct materials unsed in production direct labor cost incured but not paid indirect labor cost incurred but not paid yet payment of total factory payroll other overhead costs incurred (credit other accounts) overhead applied at 120% of direct labor cost transfer of completed products from production to finished goods inventory sale of finished goods cost of good sold for May