Sunland Manufacturing Company uses a job order cost system and keeps perpetual inventory records June 1 Purchased raw materials for $18,800 on account. 8 Raw materials requisitioned by production: Direct materials Indirect materials $7,520 940 Paid factory utilities, $1,974 and repairs for factory equipment, $7.520. 25 15 25 Incurred $128,000 of factory labor. Time tickets indicated the following 25 28 Direct Labor (7,000 hrs $14 per hr) $98,000 Indirect Labor (3,000 hrs $10 per hr) 30,000 $128,000 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked. Goods costing $18,800 were completed in the factory and were transferred to finished goods inventory