Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead cost $ 216,000 $ 267,000 ? $ 151,000 $377,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows: Raw materials Work in process Beginning Ending $ 50,000 $ 39,000 ? $ 30,000 Finished goods $ 31,000 2 The total manufacturing costs added to production for the year were $680,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $40,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold.