Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are...

	Beginning Inventory	Ending Inventory
Raw materials inventory	$64,000	$45,000
Work in process inventory	412,000	593,000
Finished goods inventory	630,000	597,000

The following additional information describes the company's production activities for May.

Materials used

Raw materials purchases (on credit)	$260,000
Factory wages cost (paid in cash)	1,542,000
Other overhead cost (Other Accounts credited)	47,000
Direct	$191,000
Indirect	88,000
Labor used
Direct	$780,000
Indirect	762,000
Overhead rate as a percent of direct labor	115%
Sales (on credit)	$6,500,000

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.

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ekkarill92 answered 1 year ago

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