Please explain the answer for both. Thank You!

5. A company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $135,000 of manufacturing overhead and an estimated allocation base of $90,000 in direct labor cost. The company has provided the following data: Ending Beginnin Raw Materials Inventory (all direct) $29,000 $11,000 Work in Process Inventory 45,000 36,000 71,000 Finished Goods Inventory 61,000 The following actual costs were incurred during the year $130,000 Purchase of raw materials (all direct $100,000 Direct labor cost $110,000 Manufacturing overhead cost Suppose the company closes out any under- or over applied overhead cost to Cost of Goods Sold. How much was the company's adjusted Cost of Goods Sold? a. $377,000 b. $357,000 c. $337,000 d. $363,000 e. None of the above