I'm so confused!

Problem 3-16 Comprehensive Problem [L03-1, LO3-2, LO3-4] of Guandong. China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive m The company uses a job-order costing system in which overhead is applied t overhead rate is based on a cost formula that estimated $76,500 o o jobs on the basts of direct labor cost Its predetermined f manufacturing overhead for an estimated activity level of $45,000 labor dollars. At the beginning of the year, the inventory balances were as follows Raw materials $10,800 Work in process$ 4,800 Finished goods 8,400 During the year, the following transactions were completed a. Raw materials purchased for cash, $ 164,000 Raw materials used in production, $148,000 (materials costing $130.000 were charged directly to jobs, the remaining materials were indirect) b. c. Cash paid to employees as follows Direct labor Indirect labor Sales commissions $270,000 $208, 1o0 $ 21,000 s 40, 000