Blue makes and sells milkshakes in individual-sized serving containers. Its most popular flavors are strawberry, caramel, chocolate, and vanilla. Due to its automated processes, it uses machine hours as its cost driver, and the company determines a budgeted MOH rate at the beginning of the year. This year's rate is estimated at $1.25/machine hour. The following events occurred this year (amounts are in thousands). 1. Purchased milk, sugar, flavorings, and other ingredients ($444 direct/$54 indirect) $498 2. Transferred direct materials into production 534 3. Incurred direct labor cost for factory workers 399 4. Transferred indirect materials into production 66 5. Incurred salary for factory supervisors 159 6. Received utility bill for factory 7. Incurred labor cost for maintenance employees in factory ER 42 79 8. Applied MOH based on 316,000 actual machine hours used ? 9. Recorded cost of goods completed 1,394 10. Recognized revenue for milkshakes sold on account 2,674 11. Recognized Cost of Goods Sold associated with units sold 1,569 The following balances existed in these accounts at the beginning of the year. RM Inventory $348 ($254 direct materials, $94 indirect materials) WIP Inventory 424 FG Inventory 274