[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 nventories Beginning Ending Inventory Inventory 60,000 92,500 Raw materials inventory Work in process inventory 435,000 515,000 633,000 605,000 Finished goods inventory The following additional information describes the company's production activities for May. 250,000 Raw materials purchases (on credit) Factory payroll cost (paid in cash) 1,530,000 other overhead cost (Other Accounts credited) 87,000 Materials used 157,500 Direct 60,000 Indirect Labor used 780,000 Direct nd rect 750,000 115% overhead rate as a percent of direct labor $2,500,000 Sales (on credit) The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost