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 $2,885,000 of fixed manufacturing overhead for an estimated allocation base of 288,500 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 1/1/XX (dollars in thousands) - Assets Cash Raw materials inventory nces Finished goods inventory Property, plant, and equipment, net Total assets Liabilities and Equity Retained earnings Total liabilities and equity $ 750 200 320 9,000 $ 10,270 $ 10,270 $ 10,270 The company's standard cost card for its only product is as follows: Inputs: Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit (1) Standard Quantity or Hours (2) Standard Price or Rater $ 31.00 per pound Standard Cost (1) x (2) $62.00 39.00 30.00 2 pounds 3.00 hours $ 13.00 per hour 3.00 hours $ 10.00 per hour $ 131.00 During the year Wallis completed the following transactions: a. Purchased (with cash) 232,500 pounds of raw material at a price of $30.00 per pound. b. Added 216.250 pounds of raw material to work in process to produce 95.500 units.