Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 219,000 Purchases of raw materials $ 260,000 Direct labor ? Administrative expenses $ 152,000 Manufacturing overhead applied to work in process $ 365,000 Actual manufacturing overhead cost $ 353,000 Inventory balances at the beginning and end of the year were as follows: Beginning Ending Raw materials $ 54,000 $ 39,000 Work in process? $ 28,000 Finished goods $ 34,000 ? The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $667,000; and the net operating income was $34,000. The companys underapplied or overapplied overhead is closed to Cost of Goods Sold.