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In: AccountingSierra Company manufactures woven blankets and accounts forproduct costs using process costing. Data below are...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 inventoriesBeginningInventoryEndingInventoryRaw materialsinventory$51,000$90,000Workin process inventory413,500539,000Finished goods inventory630,000554,000The following additional information describes the company'sproduction activities for May.Raw materialspurchases (on credit)$280,000Factory wages cost (paid in cash)1,565,000Other overhead cost (Other Accounts credited)85,000Materials usedDirect$175,000Indirect66,000Labor usedDirect$780,000Indirect785,000Overhead rate as a percent of direct labor120%Sales (on credit)$5,500,000The predetermined overhead rate was computed at the beginning ofthe year as 120% of direct labor cost.1. Compute the cost of products transferredfrom production to finished goods and cost of goods sold.2. Prepare summary journal entries dated May 31to record the following production activities during May: (a) rawmaterials purchases, (b) direct materials usage, (c) indirectmaterials usage, (d) direct labor costs incurred, (e) indirectlabor costs incurred, (f) payment of factory payroll, (g) otheroverhead costs, (h) overhead applied, (i) goods transferred fromproduction to finished goods, and (j) sale of finished goods.