Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases 800,000 Direct labor 420,000 Overhead applied 730,000 Actual overhead 745,000 Selling and administrative salaries 500,000 Other selling and administrative expenses 185,000 Sales revenue 5,000,000 Inventory data: January 1 December 31 Raw material 75,000 100,000 Work in process 105,000 140,000 Finished goods 120,000 125,000 Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to cost of goods sold.