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 Balance			Ending Balance
Raw materials	$	11,200		$	15,300
Work in process	$	32,600		$	14,600
Finished goods	$	103,000		$	124,000
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 $280,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $412,000. Raw materials were requisitioned for use in production, $407,900 ($382,000 direct and $25,900 indirect). The following employee costs were incurred: direct labor, $338,000; indirect labor, $70,000; and administrative salaries, $159,000. Selling costs, $113,000. Factory utility costs, $24,000. Depreciation for the year was $124,000 of which $112,000 is related to factory operations and $12,000 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 $1,285,000.