1. Materials inventory decreased $4,000. 2. Materials inventory on December 31 was 50% of materials inventory on January 1. 3. Beginning work in process inventory was $145,000. 4. Ending finished goods inventory was $65,000. 5. Purchases of direct materials were $154,700. 6. Direct materials used were 2.5 times the rost of direct labor. 7. Total manufacturing costs incurred were $246,400, which is 80% of cost of goods manufactured and $156,000 less than cost of goods sold. Note to students: The answers are not necessarily calculated in alphabetical order. a. Compute Finished goods inventory on January 1. b. Compute Work in process inventory on December 31. K c. Compute Direct labor incurred. d. Compute Factory overhead incurred. e. Compute Materials inventory on January 1. f. Compute Materials inventory on December 31. g. Compute Direct materials used.