Cornelius Company produces womens clothing. During the year, the company incurred the following costs:

Factory rent	$	386,000
Direct labor		312,000
Utilitiesfactory		39,600
Purchases of direct materials		565,000
Indirect materials		69,400
Indirect labor		62,400

Inventories for the year were as follows:

	January 1			December 31
Materials	$	27,000		$	43,000
Work-in-Process		46,000			40,800
Finished Goods		139,000			77,200