The following trial balance was taken from the records of Adams Manufacturing Company at the beginning of Year 3: Cash Raw materials inventory $ 9,450 Work in process inventory 790 1,300 Finished goods inventory 2,150 Property, plant, and equipment 7,850 Accumulated depreciation $ 3,100 Common stock 8,300 Retained earnings 10,140 Total $21,540 $21,540 Transactions for the Accounting Period 1. Adams purchased $6,000 of direct raw materials and $320 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,700 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand. 2. By the end of the year, $5,340 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 960 hours recorded in the Wages Payable account at $10.30 per hour. 4. By the end of the year, $8,988 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $5,959 and 1,010 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 960 for the year. 6. Selling and administrative expenses for the year amounted to $920 paid in cash. 7. Utilities and rent for production facilities amounted to $4,660 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,590. 9. There was $11,400 of goods completed during the year. 10. There was $12,150 of finished goods inventory sold for $18,200 cash. 11. A count of the production supplies revealed a balance of $90 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant.