[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 Inventory $ 60,000 435,000 633,000 Ending Inventory $ 92,500 515,000 605,000 The following additional information describes the company's production activities for May $ 250,000 1,530,000 87,000 Raw materials purchases (on credit) Factory payroll 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) $ 157,500 60,000 $ 780,000 750,000 115% $2,500,000 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 trom production to finished goods and cost of goods sold. RM - April 30 RM purchases Raw Materials (RM) 60,000 60,000 indirect materials 250,000 157,500 OM used Work in Process (WIP) 435,000 1,754,500 Cost of goods manuf 157,500 WIP - April 30 DM used TOL used Overhead applied 780.000 897.000 Factory Payroll Payable 1,530,000 FG - April 30 Cost of goods manuf Finished Goods (FG) 633,000 1,782,500 Cost of goods sold 1,754,500 Factory Overhead Income Statement (Partial) Sales Cost of goods sold Gross profit 2500 000 1,782,500 $717,500