Blasi Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
| Beginning inventories: | | |
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| Finished goods | $ 33,000 | |
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| Estimated total manufacturing overhead at the beginning of the year | $ 540,000 | |
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| Estimated direct labor-hours at the beginning of the year | 40,000 | direct labor-hours |
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Results of operations:
| Raw materials (all direct) requisitioned for use in production | $ 462,000 | |
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| Direct labor cost | $ 567,000 | |
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| Actual direct labor-hours | 39,000 | direct labor-hours |
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| Manufacturing overhead: | | |
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| Indirect labor cost | $ 121,000 | |
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| Other manufacturing overhead costs incurred | $ 451,000 | |
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| Selling and administrative: | | |
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| Selling and administrative salaries | $ 263,000 | |
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| Other selling and administrative expenses | $ 299,000 | |
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| Cost of goods manufactured | $ 1,371,000 | |
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| Sales revenue | $ 3,298,000 | |
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| Cost of goods sold (unadjusted) | $ 1,302,000 | |
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Required: a. What is the total manufacturing cost added to Work in Process during the year?
b. What is the cost of goods available for sale during the year?
c. What is the net operating income for the year?
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