Steger Designs makes winter boots and moccasins at its factory in northern Minnesota. Assume the following represents data related to Steger operations last year:

Raw materials used $ $400,000$

Total manufacturing costs charged to production during the year $($includes raw materials, direct labor, and manufacturing overhead applied at a rate of $200$ percent of direct labor costs$)850,000$

Cost of goods available for sale $958,000$

Selling and general expenses $280,000$

Inventories

Beginning Ending

Raw materials $ $110,000$ $ $105,000$

Work$-$in$-$process $75,00092,000$

Finished goods $125,000135,000$

Determine each of the following:

$($a$)$ Cost of raw materials purchased

$

Answer $1$

$($b$)$ Direct labor costs charged to production

$

Answer $2$

$($c$)$ Cost of goods manufactured

$

Answer $3$

$($d$)$ Cost of goods sold

$

Answer $4$

Please explain each step, such as why for direct labor costs you take:

Total Manufacturing costs $-$ Raw Materials used$/300*100($why divided by $300?)$