Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:

	Beginning Balance			Ending Balance
Raw materials	$	11,500		$	15,700
Work in process	$	32,500		$	14,700
Finished goods	$	110,000		$	123,000

The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,900 machine-hours and incur $268,500 in manufacturing overhead cost. The following transactions were recorded for the year: