[The following information applies to the questions displayed below.) 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 Raw materials inventory Work in process inventory Finished goods inventory Beginning Ending Inventory Inventory $ 57,000 $ 23,500 420,500 589,000 615,000 574,000 The following additional information describes the company's production activities for May. $ 260,000 1,536,000 59,000 $ Raw materials purchases (on credit) Factory wages cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used Direct Indirect Labor used Direct Indirect Overhead rate as a percent of direct labor Sales (on credit) 211,500 82,000 $ 780,000 756,000 115% $4,500,000 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. Raw Materials (RM) Work in Process (WIP) Factory Wages Payable Finished Goods (FG) Factory Overhead Income Statement (Partial) Cost of goods transferred Cost of goods sold