Dolan Manufacturing Company’s accounting records reflect the following inventories:
| Dec. 31, 2012 | Dec. 31, 2011 | |
| Raw materials inventory | $620,000 | $520,000 |
| Work in process inventory | 600,000 | 320,000 |
| Finished goods inventory | 380,000 | 300,000 |
During 2012, $800,000 of raw materials were purchased, direct labor costs amounted to $1,000,000, and manufacturing overhead incurred was $960,000.
Dolan Manufacturing Company’s total manufacturing costs incurred in 2012 amounted to
| $2,580,000. |
| $2,760,000. |
| $2,660,000. |
| $2,380,000 |
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