Required Information Use the following information for the Exercises below. (Algo) [The following Information applies to the questions displayed below] Note: Assume all raw materials were used as direct materials. Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Raw materials purchased Direct labor Factory overhead Beginning of Year End of Year $ 7,000 $ 9,500 14,000 10,000 10,500 6,500 $ 125,500 95,000 42,000 QS 18-16 (Algo) Computing direct materials used LO P2 Compute the cost of direct materials used for the current year. Cost of Direct Material Used is Computed as: