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

• Total manufacturing costs were $1,370,000.
• Cost of goods manufactured was $1,338,500.
• Applied manufacturing overhead was 20 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.

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

3. Compute the value of the companys work-in-process inventory on December 31.