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

 

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