Cape Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials Tk 36,000 Work in process Tk 41,000 Finished goods Tk 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 21,000 machine-hours and incur Tk 210,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, Tk 346,000. b. Raw materials were requisitioned for use in production, Tk 338,000 (Tk 302,000 direct and Tk 36,000 indirect).