Reference no: EM133033026

Question - The following are the information for Washington Industries:

Purchases for the year 250,000

Increase in raw materials inventory 100,000

Decrease in work in process inventory 50,000

Increase in finished goods inventory 75,000

Direct labor 100% of direct materials used

Overhead 75% of direct labor

Required -

1. How much is the total manufacturing cost of the company?

A. 262,500 B. 387,500 C. 300,000 D. 412,500

2. How much is the prime cost of the company?

A. 150,000 B. 412,500 C. 262,500 D. 300,000

3. How much is the cost of goods manufactured of the company?

A. 412,500 B. 662,500 C. 562,500 D. 462,500