Morrison Company began the year with the following balances in its inventory accounts:  Raw Materials $ 15,000  Work‐in‐Process $ 45,000  Finished Goods $ 85,000 Morrison applies overhead to production using direct labor hours. As of the beginning of the year, Morrison estimated the year’s total manufacturing overhead to be $140,000 and total direct labor hours to be 5,000. The following transactions occurred during the year: 1. Purchased $94,000 of raw materials on account. 2. Used $87,000 of raw materials. The materials used were classified as:  Direct materials $69,000  Indirect materials $18,000 3. Incurred and paid wages and salaries of $190,000, classified as:  Direct labor $130,000 (5,200 hours at $25 per hour)  Indirect labor $ 15,000  Selling and administration $ 45,000 4. Incurred various costs totaling $83,000, related to:  Production (i.e. manufacturing overhead) $60,000  Selling and Administration $23,000 5. Recorded total depreciation of $60,000, related to:  Manufacturing equipment $43,000  Equipment used for selling and administration $17,000 6. Work in process totaling $290,000 was transferred to Finished Goods during the year. 7. Finished goods costing $300,000 were sold during the year.