Management

Hemingway, Inc. applies factory overhead based on direct labor  costs. The company incurred the following costs during 2011: direct  materials costs, $650,000; direct labor costs, $3 million; and factory  overhead costs applied, $1,800,000. Assuming that the company’s $71,000  ending goods in process inventory account for 2011 had $20,000 of direct  labor costs, determine the inventories direct material costs.