Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. All of the company's manufacturing overhead costs are fixed-it does not incur any variable manufacturing overhead costs. The predetermined overhead rate is based on a cost formula that estimated $2,887,000 of fixed manufacturing overhead for an estimated allocation base of 288,700 direct labor-hours. Wallis does not maintain any beginning or ending work in process inventory The company's beginning balance sheet is as follows Wallis Company Balance Sheet (dollars in thousands) Assets Cash Raw materials inventory Finished goods inventory Property, plant, and equipment, net Total assets Liabilities and Equity Retained earnings Total liabilities and equity $ 770 220 340 9,200 $10,530 $10,530 $10,530 The company's standard cost card for its only product is as follows Standard Quantity or Hours Standard Price or Rate Standard Cost Inputs Direct materials Direct labor Fixed manufacturing overheacd Total standard cost per unit 2 pounds $ 31.40 per pound62.80 42.00 30.00 $134.80 3.00 hours 3.00 hours $ 10.00 per hour 14.00 per hou During the year Wallis completed the following transactions