[The following information applies to the questions displayed below.J Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. Raw materials inventory Goods in process inventory Finished goods inventory Beginning Inventory $57,000 404,000 631,000 Ending Inventory $40,000 542,000 498,001 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 290,000 2,055,000 92,000 Direct Indirect $166,000 76,000 Labor used Direct Indirect $1,235,000 820,000 125% Overhead rate as a percent of direct labor Sales (on credit) $4,000,000 The predetermined overhead rate was computed at the beginning of the year as 125% of direct labor cost