Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory balances were as follows: Raw materials Work in process Finished goods $17,000 $10,400 $30,200 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it would work 36,200 machine-hours and incur $157,470 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were purchased on account: $204,000. b. Raw materials were requisitioned for use in production: $192,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services: Direct labour Indirect labour Sales commissions $161,600 $ 27,400 $ 36,600 Administrative salaries $ 80,800.