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 $ 212,000 $ 265,000 $ 158,000 378,000 $ 359,000 Inventory balances at the beginning and end of the year were as follows Beginning of Year End of Year Raw materials Work in process Pinished goods $ 50,000 38,000 32,000 40,000 The total manufacturing costs for the year were $690,000; the cost of goods available for sale totaled $745,000; the unadjusted cost of goods sold totaled $661,000; and the net operating income was $32,000. The company's underapplied or overapplied overhead is closed to Cost of Goods Sold