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 Inventory			Ending Inventory
Raw materials inventory	$	55,000		$	64,000
Work in process inventory		415,000			589,000
Finished goods inventory		635,000			574,000

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

Raw materials purchases (on credit)	$	270,000
Factory wages cost (paid in cash)		1,576,000
Other overhead cost (Other Accounts credited)		46,500
Materials used
Direct	$	185,000
Indirect		76,000
Labor used
Direct	$	790,000
Indirect		786,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	6,500,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost.

rev: 09_05_2017_QC_CS-97362

Required: 1. Compute the cost of products transferred from production to finished goods and cost of goods sold.

Raw Materials (RM) Work in Process (WIP) FG - April 30 RM - April 30 55,000 DM used 185,000 415,000 RM purchases 270,000 Indirect materials DM used 76,000 185,000 DL used 790,000 Overhead applied Finished Goods (FG) Factory Wages Payable Income Statement (Partial) Factory Overhead 0 $ Cost of goods transferred Cost of goods sold