Margaret Rosenthal, accountant for Russell Manufacturing Company, prepared the following income statement for the quarter ending December 31, 2019. Sales Purchases of materials (1) Payroll (2) Advertising Administrative travel Manufacturing utilities Facility rental (3) Depreciation (4) Sales commissions Annual insurance (manufacturing) Office utilities Management salaries (5) Net income Notes: (1) 90% of the materials were direct (2) 70% direct labour; 30% indirect labour (3) 90% related to manufacturing (4) 75% related to manufacturing $1,444,600 253,340 269,300 38,400 29,000 52,200 88,000 66,300 55,000 54,000 23,800 402,000 $ 113,260 (5) 40% related to manufacturing Furthermore, Rosenthal compiled the following information with respect to inventories for the quarter (note that the company does not maintain inventories of indirect materials). Direct materials Work in process Finished goods Beginning $ 7,570 8,770 11,980 Ending $ 8,980 10,240 7,840