Problem: Herget, Inc employs a normal costing system. The following information pertains to the year just ended.
Total manufacturing costs were $2,500,000.
Costs of Goods Manufactured was $2,425,000.
Applied manufacturing overhead was 30 percent of total manufacturing costs.
Manufacturing overhead was applied to production at a rate of 80% of direct-labor cost.
Work-in-Process inventory on January 1 was 75% of work-in-process inventory on December 31.
1. Compute Herget's total direct-labor cost for the year.
2. What is the company's total direct material cost during the year?
3. What is the value of the company's work-in-process at the end of the year?