Cherry Hill Glass Company employs a normal costing system The following
Cherry Hill Glass Company employs a normal-costing system. The following information pertains to the year just ended.
• Total manufacturing costs were $1,250,000.
• Cost of goods manufactured was $1,212,500.
• Applied manufacturing overhead was 30 percent of total manufacturing costs.
• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.
• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.

Required:
1. Compute Cherry Hill’s total direct-labor cost for the year.
2. Calculate the total cost of direct material used during the year.
3. Compute the value of the company’s work-in-process inventory on December 31.
(CMA, adapted)

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