Edison Company manufactures wool blankets and accounts for product costs using process costing. The…

Beginning
Inventory Ending
Inventory
Raw materials inventory $ 63,000 $ 48,000
Goods in process inventory 405,000 525,000
Finished goods inventory 605,000 382,001

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

Raw materials purchases (on credit) $ 290,000
Factory payroll cost (paid in cash) 1,808,000
Other overhead cost (Other Accounts credited) 96,000
Materials used
Direct $ 180,000
Indirect 74,000
Labor used
Direct $ 1,058,000
Indirect 750,000
Overhead rate as a percent of direct labor 115 %
Sales (on credit) $ 3,000,000
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