W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory Phillips' accounting records provide the following information: Purchases of raw materials $320,000 46,800 Beginning materials inventory Ending materials inventory 66,800 Direct labor 200,000 Indirect labor 40,000 Rent factory building 42,000 Depreciation, factory equipment 60,000 Utilities, factory 11.900 Salary, sales supervisor 90,000 Commissions, salespersons 180,000 300,000 13,040 General administration Beginning work-in-process inventory Ending work-in-process inventory Beginning finished goods inventory Ending finished goods inventory 14.940 80,000 114.100 Labels Add Less Manufacturing overhead Selling expenses Amount Descriptions Beginning work in process Commissions Cost of goods manufactured Cost of goods sold Depreciation, factory equipment Direct materials Direct labor Ending work in process General administration expense Gross margin Indirect labor Operating income Operating loss Rent, factory building Sales Sales supervisor's salary Total cost of product Utilities factory