Total prime costs-total conversion costs


Problem: The Following information comes from the accounting records for Santa Cruz, Inc. for March:

Direct material inventory, March 1    $6,000.00
Direct material inventory, March 31 5,000.00
Work-in-process inventory, March 1    3,000.00
Work-in-process inventory, March 31    2,000.00
Finished goods inventory, March 1    18,000.00
Finished goods inventory, March 31    24,000.00
Direct material purchased during March    80,000.00
Direct labor costs, March    64,000.00
Manufacturing overhead, March    84,000.00

Required:

Compute, for the month of March:

A. Total prime costs

B. Total conversion costs

C. Total manufacturing costs

D. Cost of goods manufactured

E. Cost of goods sold

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Accounting Basics: Total prime costs-total conversion costs
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