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.) January 1 December 31 $ 7,100 13,800 10,600 $ 8,500 9,800 7,500 Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Materials purchased Direct labor Factory overhead $124,000 95,200 39,600 Cost of Direct Material Used is Computed as