Finished Goods Inventory Beginning Balance 80,000 Transferred In Unknown Transferred to Cost of Goods Sold 200,000 Work in Process Inventory Beginning Balance 175,000 Transferred to Finished Goods 316,000 Cost of Goods Sold Beginning Balance Transferred In 500,000 Unknown Wages Payable - Factory Total Payroll (Direct & Indirect Labor) 628,000 Direct Labor 405,000 Indirect Labor 223,000 Materials Inventory Beginning Balance 180,000 Purchases 395,600 Transferred to Work in Process 379,400 Transferred to Factory Overhead 96,200 Factory Overhead Applied Factory Overhead Rate 50% of Direct Labor or $202,500