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. Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other overhead cost (Other Accounts credited) Materials used $ 250,000 1,530,000 87,000 Direct Indirect $157,500 60,000 Labor used Direct Indirect $ 780,000 750,000 Overhead rate as a percent of direct labor Sales (on credit) 115% $2,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost