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[The following information applies to the questions displayedbelow.] Sierra Company manufactures woven blankets and accounts forproduct costs using process costing. Data below are for one of

[The following information applies to the questions displayedbelow.] Sierra Company manufactures woven blankets and accounts forproduct costs using process costing. Data below are for one of itsprocessing departments. The following information is availableregarding its May inventories Beginning Inventory Ending InventoryRaw materials inventory $ 62,000 $ 136,500 Work in processinventory 400,500 549,000 Finished goods inventory 618,000 579,000The following additional information describes the company'sproduction activities for May. Raw materials purchases (on credit)$ 290,000 Factory wages cost (paid in cash) 1,574,000 Otheroverhead cost (Other Accounts credited) 64,500 Materials usedDirect $ 155,500 Indirect 60,000 Labor used Direct $ 790,000Indirect 784,000 Overhead rate as a percent of direct labor 115 %Sales (on credit) $ 3,500,000 The predetermined overhead rate wascomputed at the beginning of the year as 115% of direct labor cost.rev: 09_05_2017_QC_CS-97362 2. Prepare summary journal entriesdated May 31 to record the following production activities duringMay: (a) raw materials purchases, (b) direct materials usage, (c)indirect materials usage, (d) direct labor costs incurred, (e)indirect labor costs incurred, (f) payment of factory payroll, (g)other overhead costs, (h) overhead applied, (i) goods transferredfrom production to finished goods, and (j) sale of finishedgoods.

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