Plasencia 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: Finished goods $ 33,000 Estimated total manufacturing overhead at the beginning of the year $ 635,500 Estimated direct labor-hours at the beginning of the year 41,000 direct labor-hours Results of operations: Actual direct labor-hours 42,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 177,000 Other manufacturing overhead costs incurred $ 444,000 Selling and administrative: Selling and administrative salaries $ 280,000 Other selling and administrative expenses $ 310,000 Cost of goods manufactured $ 1,501,000 Sales revenue $ 2,704,000 Cost of goods sold (unadjusted) $ 1,416,000 The net operating income is. Garrison 16e Rechecks 2017-08-28

a. $1,318,000
b. $1,008,000
c. $728,000
d. $1,038,000