QS 14-12 Direct materials used LO P2 Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.) Inventories January 1 December 31 Raw materials inventory $ 7,800 $8,700 Work in process inventory 14,600 10,200 Finished goods inventory 9,400 6,400 Activity during current year Materials purchased $129,000 Direct labor 95,200 Factory overhead 42,600 Cost of Direct Material Used Is Computed as