Sanchez company has a process cost accounting system. Sanchez incurred material, direct labor, and manufacturing overhead costs evenly during processing. On September 1, the firm had 20,000 units in process, 40% complete with the following accumulated costs: Material $156,000, Direct Labor $80,000, Manufacturing overhead $60,000. During September, Sanchez started 110,000 units in process and incurred the following costs: Material $1,244,000, direct labor $980,000, and manufacturing overhead 638,000. During September, Sanchez completed 90,000 units. T he 40,000 units in ending inventory were, on average 40% complete. Prepare a production cost report using FIFO.