Freeman Furnishings has summarized its data as shown:

Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

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Depreciation of factory building Factory real estate taxes Factory utility expenses Indirect materials Indirect labor Direct labor cost Direct labor hours incurred Estimated direct labor hours Raw materials purchased Raw materials, beginning inventory Raw materials, ending inventory Work in process, beginning inventory Work in process, ending inventory Estimated overhead $100,000 15,000 85,000 32,000 25,000 85,000 23,500 24,000 $350,000 30,000 28,000 51,000 67,000 270,000