Farber Company employs a normal (nonstandard) absorption cost system. The following
information is from the financial records of the company for the year.
• Total manufacturing costs were $2,500,000.
• Cost of goods manufactured was $2,425,000.
• Applied factory overhead was 30% of total manufacturing costs.
• Factory overhead was applied to production at a rate of 80% of direct labor cost.
• Work-in-process inventory at January 1 was 75% of work-in-process inventory at December 31.
The carrying value of Farber Company’s work-in-process inventory at December 31 is