Mid-Life Motorcycles (MLM) is a small shop that builds customized motorcycles, mostly for middle-aged men with significant discretionary income who are hoping to fulfill a high-school dream. Since it works with high-end clients, all of its work is custom and it makes many of the bike parts used, including frames, in-house. Other parts, such as the engine, are purchased from outside suppliers and then modified in-house. Although most of the bikes are built to-order for a specific individual, the shop occasionally builds a bike with no prearranged buyer. These bikes are sometimes intended to be entered in custom-bike contest and then sold afterwards. The shop has been in existence for 10 years, but for the sake of simplicity, assume it has no beginning inventories for 2019. Five motorcycle restoration projects were worked on during 2019. By the end of the year, four of these projects were complete and three of them had been sold. The following selected data are from MLM's 2019 budget. Advertising Direct materials Direct labor $ 11,870 216,000 194,700 ces Rent on office space 10,600 Rent on factory space 31,800 Indirect materials 16,000 Maintenance costs for factory equipment 5,400 Utilities costs for office space 1,900 Utilities costs for factory space 4,000 Depreciation on factory equipment 12,000 Machine hours expected to be worked Direct labor hours expected to be worked 4,000 6,500 The following information relates to production events during 2019. Raw materials were purchased for $207,500. Materials used in production totaled $200,400, $15,200 of these were considered indirect materials costs. The remaining $185,200 of direct materials costs related to individual motorcycle jobs as follows. Job Number 115 Direct Materials Cost $42,400 116 34,700 117 118 41,100 119 38,000 28,200 Labor costs incurred for production totaled $176.700. The workers are highly skilled craftsmen who require little supervision.