Milanese Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The company's balance sheet at the beginning of the year was as follows: Milanese Corporation Balance Sheet January 1 Assets Cash Raw materials inventory Finished goods Inventory Property, plant, and equipment (net) Total assets $1,090,780 25,052 78.700 652,410 $1,846, 940 Liabilities and Equity Retained earnings Total liabilities and equity $1.346. $1,346, 140 The standard cost card for the company's only produc ties and equity $1,846,940 The standard cost card for the company's only product is as follows: Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit Standard Quantity or Hours 1.60 gallons 0.70 hours 0.78 hours Standard Price or Rate $ 4.89 per gallons $26.00 per hour $15.70 per hour Standard Cost S 6.40 18.20 10.99 $35.59 The standard fixed manufacturing overhead rate was based on budgeted foxed manufacturing overhead of $219.800 and budgeted activity of 14.000 hours During the year, the company completed the following transactions 3. Purchased 32.400 gallons of raw material or a price of $4.90 per go on b. Used 28.580 gallons of the row material to produce 17 800 units of work process