Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. Its predetermined overhead rate was based on a cost formula that estimated $226,500 of manufacturing overhead for an estimated allocation base of $151,000 direct material dollars. The following transactions took place during the year (all purchases and services were acquired on account) a. Raw materials purchased, $152,000. b. Raw materials requisitioned for use in production (all direct materials), $147,000. c. Utility bills incurred in the factory, $23,000. d. Costs for salaries and wages were incurred as follows: 219,000 Direct labor Indirect labor 66,700 Selling and administrative salaries 143,000 e. Maintenance costs incurred in the factory, $23,000 f. Advertising costs incurred, $120,000 g. Depreciation recorded for the year, $49,000 (90% relates to factory assets, and the remainder relates to selling and administrative assets) h. Rental cost incurred on buildings, $84,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration) i. Miscellaneous selling and administrative costs incurred, $14,000. j. Manufacturing overhead cost was applied to jobs, k. Cost of goods manufactured for the year, $559,000. I. Sales for the year (all on account) totaled $1,500,000. These goods cost $510,000 according to their job cost sheets. The balances in the inventory accounts at the beginning of the year were as follows 20,000 Raw materials Work in process 25,000 Finished Goods 40,000