Day 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 $24,000 Work in process $73.000 $27,000 Finished goods 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 45,000 machine-hours and incur $180,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased, $416.000. b. Raw materials were requisitioned for use in production, $430,000 ($380,000 direct and $50,000 indirect). c. The following employee costs were incurred: direct labor. $414,000: indirect labor. $70,000; and administrative salaries, $212,000. d. Selling costs, $141,000. e. Factory utility costs, $18,000. f. Depreciation for the year was $71,000 of which $63,000 is related to factory operations and $8,000 is related to selling, general, and administrative activities. g. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 58,000 machine- hours. h. The cost of goods manufactured for the year was $1,004,000. i. Sales for the year totaled $1,416,000 and the costs on the job cost sheets of the goods that were sold totaled $989,000. j. The balance in the Manufacturing Overhead account was closed out to Cost of Goods Sold.