Mellon Company, a manufacturing firm, has supplied the following information from its accounting records for the year 2008 (in thousands of dollars):
| Purchase of raw material |
$76,000 |
| Direct Labour Cost |
52,500 |
| Supplies used |
5,300 |
| Factory Insurance |
1,050 |
| Commission Paid |
7,500 |
| Factory Supervision |
9,675 |
| Advertising |
2,400 |
| Material Handling |
11,000 |
| Work-in-progress inventory, December 31,2007 |
47,500 |
| Work-in-progress inventory, December 31,2008 |
42,000 |
| Materials inventory, December 31,2007 |
10,400 |
| Materials inventory, December 31,2008 |
28,500 |
| Finished Goods inventory, December 31, 2007 |
20,055 |
| Finished Goods inventory, December 31, 2008 |
10,750 |
Required
1. Prepare a statement of cost of goods manufactured.
2. Prepare a statement of cost of goods sold.
3. What was total prime cost for 2008? Total conversion cost?