Stam 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	$	175,000		$	183,000
Work in process inventory		665,000			630,000
Finished goods inventory		863,000			777,000
Prepare journal entries for the month of May's transactions.

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

Raw materials purchases (on credit)	$	470,000
Factory wages cost (paid in cash)		1,714,000
Other overhead cost (Other Accounts credited)		362,000
Materials used
Direct	$	390,000
Indirect		72,000
Labor used
Direct	$	895,000
Indirect		819,000
Overhead rate as a percent of direct labor		140	%
Sales (on credit)	$	3,190,000	Prepare journal entries for the month of May's transactions.