Bakerston 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 Ending Balance Balance Raw materials 11,600 15,900 14,500 Work in process 32,100 $123,000 Finished goods $104,000 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 17,500 machine-hours and incur $262,500 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $413,000. Raw materials were requisitioned for use in production, $408,700 ($381,000 direct and $27,700 indirect). The following employee costs were incurred: direct labor, $339,000; indirect labor, $74,000; and administrative salaries, $154,000. Selling costs, $111,000. Factory utility costs, $30,000. Depreciation for the year was $125,000 of which $112,000 is related to factory operations and $13,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,300 machine-hours Sales for the year totaled $1,290,000