Use the following information to compute the cost of direct materials used for the current year. (Assume no indirect materials.) January 1 December 31 Inventories Raw materials inventory $ 6,800 $ 8,400 Work in process inventory 14,000 11, 200 Finished goods inventory 9,100 6,300 Activity during current year Materials purchased $130,500 Direct labor 98,000 Factory overhead 41,400 Cost of Direct Material is Computed as