What is the Cost of Goods Sold?

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 $ 66,000 410,000 605,000 Ending Inventory $ 122,500 593,000 225,001 The following additional information describes the company's production activities for May. $ 290,000 1,550,000 84,500 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) $ 169,500 64,000 $ 790,000 760,000 115% $6,500,000 The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor cost