McAllister, Inc. employs a normal costing system. The following information pertains to the year just ended.

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McAllister, Inc. employs a normal costing system. The following information pertains to the year just ended.

• Total manufacturing costs were $2,500,000.

• Cost of goods manufactured was $2,425,000.

• Applied manufacturing overhead was 30 percent of total manufacturing costs.

• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.

• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.

Required:

1. Compute the total direct-labor cost for the year.

2. Calculate the total cost of direct material used during the year.

3. Compute the value of the company’s work-in-process inventory on December 31.

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