Sales revenue $ 1,800,000

Salaries, sales and administration 220,000

Insurance, factory 16,000

Direct material purchases 580,000

Advertising and promotion 160,000

Rent, factory building 80,000

Maintenance, factory 60,000

Legal and professional services 10,000

Freight-out 50,000

Supplies, factory 14,000

Utilities (80% factory) 100,000

Product research and development 68,000

Indirect labor 112,000

Equipment depreciation (90% factory) 90,000

Direct labor ?

January 1 December 31

Direct material $ 45,000 $ 22,000

Work in process 42,000 ?

Finished goods 17,000 60,000

	Jan 1	Dec 31
Direct Material	45000	22000
Work In Process	42000	?
Finished Goods	17000	60000

Cost of goods sold for 2015 totaled $1,200,000 and total manufacturing costs incurred during the year were $1,240,000.

Determine (a) the direct labor costs for 2015 and (b) the work in process inventory on December 31, 2015. Provide, in a logical sequence, neat and complete documentation of all computations necessary to determine these two answers.