Exercise 3-28\ Cost Relationships; Normal Costing System\ (LO3-2, 3-4, 3-6)\ LaToya Creations 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: Compute the following to support the preparation of financial statements.\ Compute the total direct-labor cost for the year.\ Calculate the total cost of direct material used during the year.\ Compute the value of the company's work-in-process inventory on December 31.

- Exercise 3-28 Cost Relationships; Normal Costing System (LO3-2, 3-4, 3-6) LaToya Creations 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: Compute the following to support the preparation of financial statements. 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