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

• Total manufacturing costs were $1,290,000.
• Cost of goods manufactured was $1,254,500.
• 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.

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