DEF Company's beginning and ending inventories for the month of September were as follows: September 1 September 30 Direct materials $80,000 $78,000 Work in Process $155,000 $166,000 Finished Goods $90,000 $88,000 Production data for month follow: Direct labor cost incurred $215,000 Actual manufacturing overhead cost incurred $145,000 Direct materials purchases $160,000 DEF Company applies the manufacturing overhead cost to jobs at the rate of 75% of the direct labor cost incurred. This rate has been used for many years. The company does not close the under or over-applied manufacturing overhead to the Cost of Goods Sold until the end of the year. Based on this information, we can say that: