Problem - Pear Corporation had the following activities during 2016:
Direct materials:
Beginning inventory $ 22,000
Purchases 61,600
Ending inventory 10,800
Direct manufacturing labor 18,000
Manufacturing overhead 11,500
Beginning work-in-process inventory 1,000
Ending work-in-process inventory 3,500
Beginning finished goods inventory 25,000
Ending finished goods inventory 19,000
Required:
a. What is the cost of direct materials used during 2016?
b. What is cost of goods manufactured for 2016?
c. What is cost of goods sold for 2016?
d. What amount of prime costs was added to production during 2016?
e. What amount of conversion costs was added to production during 2016?