Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its…

Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. 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 rev: 1