902 chapter 16 P16-38B Determining the flow of costs through a manufacturer's inventory Learning Objective 3 accounts 3. $21,420,000 True Fit Shoe Company makes loafers. During the most recent year, True Fit incurred total manufacturing costs of $21,900,000. Of this amount, $2,600,000 was direct materials used and $14,800,000 was direct labor. Beginning balances for the year were Direct Materials, $700,000; Work-in-Process Inventory, $1,500,000; and Finished Goods Inventory, $1,100,000. At the end of the year, balances were Direct Materi als, $800,000; Work-in-Process Inventory, $2,000,000; and Finished Goods Inventory, $1,080,000 Requirements Analyze the inventory accounts to determine 1. Cost of direct materials purchased during the year. 2. Cost of goods manufactured for the year. 3. Cost of goods sold for the year CHAPTER 16