Nelson Company, which uses a job-order costing system, had the following account balances on January 1 of the current year: Raw Materials $18,500 Work in Process $67,200 Finished Goods $88,900 The Work-in-Process Inventory consisted of three jobs: #401 $14,700; #402 $26,900; and #403 $25,600. The Finished Goods Inventory consisted of two jobs, #399 $42,600 and #400 $46,300. Nelson uses a normal costing system with an overhead rate based on machine hours. The following budgeted information was available for 2020: Annual overhead costs $225,000 and machine hours 50,000. During the current year, the following transactions took place: a. Raw materials costing $120,000 were purchased on account. b. Total factory labor charges accrued were $375,000. c. A summary of material requisitions and time tickets appeared as follows: Time Tickets Machine Material Labor Labor Hours Job No. Requisitions Hours Cost Used 401 $9,200 600 $ 14,400 4,700 402 8,700 1,100 26,400 5,300 403 10,600 1,400 33.600 3.800 404 11,200 2,200 52,800 9,200 405 15,700 3,000 72,000 10,700 406 18,900 2,800 67,200 12,000 407 7,800 800 19,200 2,100 408 12,100 1,100 26,400 3.200 sub-total $94,200 13,000$ 312,000 51.000 Indirect 6,800 63,000 Total $101.000 S 375,000 d. Other factory costs include $76,000 of depreciation on factory equipment, $22,000 of expired factory insurance, $12,000 of accrued property taxes and $45,000 of miscellaneous factory costs paid in cash. Job Nos. 401, 402, 404, 406, and 408 were completed. f. Job Nos. 399, 400, 402, 406, and 408 were sold for a total of $700,000 cash. e. D. Verify the ending balance of the work-in-process and finished goods inventories by reconciling the balances to the appropriate job cost sheets--make sure that you show this step E. Prepare the manufacturing statement and a partial income statement through gross profit) for the year