Oregon Paper Company produces newsprint paper through a special recycling process using scrap paper products. Production and cost data for October 2014, the first month of operations for the company's new Portland plant, follow:

Units of product started in process during October 80,000 tons

Units completed and transferred to finished goods 75,000 tons

Machine hours operated 7,000

Direct materials costs incurred $ 486,000

Direct labor costs incurred $ 190,800

Raw materials are added at the beginning of the process for each unit of product produced, and labor and manufacturing overhead are added evenly throughout the manufacturing process. Manufacturing overhead is applied to Work-in-Process at the rate of $24 per machine hour. Units in process at the end of the period were 60 percent converted. Prepare a cost of production report for Oregon Paper Company for October