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.