Please choose the correct answer in the two exercises below and explain briefly how you computed it.
Problem 1. The following costs were incurred in August:
Direct materials $21,800
Direct labor $19,100
Manufacturing overhead $19,400
Selling expenses $14,500
Administrative expenses $20,400
Prime costs during the month totaled:
a. $95,200
b. $60,300
c. $40,900
d.$21,800
Problem 2. Green Company's costs for the month of August were as follows: direct materials, $28,500; direct labor, $34,200; selling, $13,500; administrative, $12,000; and manufacturing overhead, $43,500. The beginning work in process inventory was $15,700 and the ending work in process inventory was $8,300. What was the cost of goods manufactured for the month?
a. $133,600
b. $106,200
c. $113,600
d. $139,600