Apple recorded the following information related to their inventory accounts for 2016:
January 1, 2016 December 31, 2016
Direct materials 50,000 36,000
Work in process 22,000 41,000
Finished goods 38,000 35,000
Apple accounting records for 2016 indicated the following costs had been incurred:
Direct materials purchased ................... $124,000
Depreciation, factory equipment .............. 40,000
Direct labor ................................. 97,000
Utilities..................................... 20,000
Sales commissions............................. 56,000
Indirect materials............................ 18,000
Depreciation, office equipment ............... 27,000
Production supervisor's salary ............... 67,000
Advertising................................... 61,000
60% of the utilities relate to the factory while 40% of the utilities relate to the general office building. Calculate Apple's prime costs for 2016.