The answer is NOT 125,597.

Wabash Products uses a job costing system and applies overhead based on direct labor cost. Last year, manufacturing overhead was expected to be $4,896,000 and direct labor cost was estimated to be $1,800,000 (43,200 direct-labor hours). Actual manufacturing overhead amounted to $5,024,000 and direct labor cost was $1,900,000 (44,100 direct-labor hours). Wabash allocates an over- or underapplied overhead to the three accounts-Work-in-Process Inventory, Finished Goods Inventory. and Cost of Goods Sold-based on those account balances. At the end of the year, the total amount in the three accounts (Work-in- Process Inventory. Finished Goods Inventory, and Cost of Goods Sold) was $7.20 million before any allocation. As a part of the process, you learn that Wabash allocated $128,160 to Cost of Goods Sold. Required: What will Wabash report as Cost of Goods Sold for the year? Cost of Goods Sold