Inventory Classification January 1, 20x1 December 31, 20x1
Raw material $ 55,000 $ 70,000
Work in process 120,000 115,000
Finished goods 160,000 165,000
During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:
Indirect material $ 9,000
Indirect labor 24,000
Depreciation on plant and equipment 100,000
Utilities 27,000
Other 30,000