For the year ended December 31, 2017. Sales $978,000 Purchases of materials 176,000 Indirect labor 42,000 Indirect materials 12,000 Direct labor 392,000 Depreciation of factory equipment 5,300 Depreciation of factory building 18,000 Selling expenses 44,000 Other factory overhead expenses 48,000 Materials inventory, December 31, 2017 36,000 Work in process, January 1, 2017 72,000 Materials inventory, January 1, 2017 24,000 Work in process, December 31, 2017 98,000 Finished goods inventory, January 1, 2019 112,000 Finished goods inventory, December 31, 2019 116,000 The Cost of indirect materials is included in the total purchases of materials for the year