Reference no: EM132686196

Problem - Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available:

Total manufacturing costs incurred during the year, 2,200,000;

Cost of goods manufactured amounted to 1,940,000;

Factory Overhead is applied to production at 80% of direct labor cost;

Applied Factory Overhead during the year amounted to 30% of total manufacturing cost;

Beginning work-in-process inventory was 75% of the work-in-process at the end.

Compute the cost of direct materials used for the year ended December 31, 2019.