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Gitano Products Schedule of Cost of Goods Manufactured Direct materials. Beginning raw materials inventory 20,000 Add: Purchases of raw materials 510,000 Total raw materials available 530,000 Less: Ending raw materials inventory (80,000) Direct materials used in production S 450,000 Direct labor 90,000 Manufacturing overhead applied to work in process 720,000 Total manufacturing costs added to production 1,260,000 Total manufacturing costs to account for 1,260,000 Less: Ending work in process inventory (70,000) Cost of goods manufactured $ 1,340,000