Required information

Exercise 3-28 Cost Relationships; Normal Costing System (LO 3-2, 3-4, 3-6)

[The following information applies to the questions displayed below.]

McAllister, Inc. employs a normal costing system. The following information pertains to the year just ended.

• Total manufacturing costs were $1,420,000.
• Cost of goods manufactured was $1,391,000.
• Applied manufacturing overhead was 20 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.

Exercise 3-28 Part 3

3. Compute the value of the companys work-in-process inventory on December 31.