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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	$	69,000		$	39,000
Work in process inventory		424,500			605,000
Finished goods inventory		611,000			301,001

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

Raw materials purchases (on credit)	$	260,000
Factory payroll cost (paid in cash)		1,563,000
Other overhead cost (Other Accounts credited)		26,000
Materials used
Direct	$	202,000
Indirect		88,000
Labor used
Direct	$	780,000
Indirect		783,000
Overhead rate as a percent of direct labor		115	%
Sales (on credit)	$	5,500,000

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

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