Problem - Homer Inc. had the following activities during 2012:
Direct materials:
Beginning inventory $ 20,000
Purchases 61,600
Ending inventory 10,400
Direct manufacturing labor 16,000
Manufacturing overhead 12,000
Selling and Administrative Expenses 10,000
Beginning work-in-process inventory 800
Ending work-in-process inventory 4,000
Beginning finished goods inventory 24,000
Ending finished goods inventory 16,000
Units Produced 100
Required:
a. What is the cost of direct materials used during 2012?
b. What is cost of goods manufactured for 2012?
c. What is cost of goods sold for 2012?
d. What amount of prime costs was added to production during 2012?
e. What amount of conversion costs was added to production during 2012?