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 $2,914,000 of fixed manufacturing overhead for an estimated allocation base of 291,400 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 330 450 10,300 $11,960 $11,960 The company's standard cost card for its only product is as follows: Standard Quantity or Hours Standard Price or Rate 2 pounds 33.60 per pound67.20 Standard Cost Inputs Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit 3.00 hours 15.00 per hour 3.00 hours 10.00 per hour 45.00 30.00 $142.20 During the year Wallis completed the following transactions: a. Purchased (with cash) 239,000 pounds of raw material at a price of $31.30 per pound. b. Added 219,500 pounds of raw material to work in process to produce 96,800 units. c. Assigned direct labor costs to work in process. The direct laborers (who were paid in cash) worked 248,600 hours at an average cost of $16.00 per hour to manufacture 96,800 units