Raw materials	$12,000
Work in process	14,000
Finished goods	18,000

During the year, the following transactions were completed:

1. Raw materials were purchased on account, $135,000.
2. Raw materials were issued from the storeroom for use in production, $175,000 (70% direct and remaining indirect).
3. Employee salaries and wages were accrued as follows: direct labour, $135,000; indirect labour, $75,000; selling and administrative salaries, $145,000.
4. Utility costs were incurred in the factory, $85,000.
5. Advertising costs were incurred, $120,000.
6. Prepaid insurance expired during the year, $40,000 (75% related to factory operations, and 25% related to selling and administrative activities).
7. Depreciation was recorded, $140,000 (85% related to factory assets, and 15% related to selling and administrative assets).
8. Manufacturing overhead was applied to jobs at the rate of 175% of direct labour cost.
9. Goods that cost $800,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
10. Sales for the year totaled $1,200,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $820,000.