Time allowed: 35 minutes Gitano Products operates a job-order cost system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's estimates were: manufacturing overhead cost, 800,000; and direct materials to be used in production, 500,000. The company's inventory accounts at the beginning and end of the year were: Raw materials Work in progress Finished goods Beginning 20,000 150,000 260,000 Ending 80,000 70,000 The following actual costs were incurred during the year: 510,000 90,000 Purchase of raw materials (all direct) Direct labour cost Manufacturing overhead costs Indirect labour Property taxes Depreciation of equipment Maintenance Insurance Rent, building 170,000 48,000 260,000 95,000 7,000 180,000