Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermlned plantwide overhead rate that relles 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 $2,899,000 of fixed manufacturing overhead for an estimated allocation base of 289,900 direct labor-hours. Wallis does not malntain 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 85e Raw materials inventory 3ee Finished goods inventory Property, plant, and equipment, net 420 18, eee Total assets $11,578 Liabilities and Equity Retained earnings $11,570 Total liabilities and equity $11,570 The company's standard cost card for Its only product Is as follows: (1) (2) Standard Standard Standard Quantity or Hours 2 pounds $ 33.00 per pound 3.00 hours Price Cost Inputs or Rate (1) x (2) Direct materials $ 66.e0 45.e0 Direct labor $ 15.e0 per hour $ 10.ee per hour Fixed manufacturing overhead 3.00 hours 30.ee Total standard cost per unit $141.ee During the year Wallis completed the following transactions: a. Purchased (with cash) 237,500 pounds of raw materlal at a price of $31.00 per pound. b. Added 218,750 pounds of raw material to work in process to produce 96,500 units. C. Assigned direct labor costs to work in process. The direct laborers (who were pald in cash) worked 248,000 hours at an average cost of $16.00 per hour to manufacture 96,500 units. d. Applied fixed overhead to work in process Inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed to manufacture 96,500 units. Actual fixed overhead costs for the year were $2747,500. Of this total, $1,355,000 related to Items such as Insurance, utilities, and salarled indirect laborers that were all pald in cash and $1,392,500 related to depreclation of equipment. e. Transferred 96,500 units from work in process to finished goods. f. Sold (for cash) 93,500 units to customers at a price of $170 per unit. g. Transferred the standard cost associated with the 93,500 units sold from finished goods to cost of goods sold. h. Pald $2,127,500 of selling and adminitrative expenses. 1. Closed all standard cost varlances to cost of goods sold.