Reference no: EM132905832

The following data pertains to Lam Co.'s manufacturing operations:

Inventories                          4/1                    4/30

Direct Materials              $21,000           $17,400

Work in Process              10,200              6,900

Finished Goods                31,200             42,000

Additional information for the month of April:

Direct materials purchased $36,800

Direct labor 36,000

Direct labor rate per hour 10

Factor overhead incurred 47,200

Overhead is applied at $12 per direct labor hour.

Problem 1: For the month of April, prime cost incurred was:

Multiple Choice

Option 1: $76,400.
Option 2: $77,400.
Option 3: 86,400.
Option 4: $73,400.