Candy 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 Raw Materials Work in Process Finished Goods Beginning Ending Balance Balance $11,000 $15,000 $32,000 $14,000 $108,000 $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 17,000 machine-hours and incur $272,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $416,000. Raw materials were requisitioned for use in production, $402,000 $(376,000 direct and $26,000 indirect). The following employee costs were incurred: direct labor, $330,000; indirect labor, $79,000; and administrative salaries, $157,000. Selling costs, $113,000. Factory utility costs, $19,000. Depreciation for the year was $125,000 of which $118,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 18,000 machine- hours. Sales for the year totaled $1,282,000.