Selling expenses $217,000 Purchases of raw materials $263,000 Direct labor ? Administrative expenses $151,000 Manufacturing overhead applied to work in process $336,000 Total actual manufacturing overhead costs $359,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $59,000 $30,000 Work in process ? $29,000 Finished goods $37,000 ? The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $39,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold