Question: This item is based on the following information pertaining to Arp Co.'s manufacturing operations:
Inventories 3/1/89 3/31/89
Direct Materials $36,000 $30,000
Work-in-process 18,000 12,000
Finished Goods 54,000 72,000
Additional information for the month of March 1989:
Direct materials purchased $84,000
Direct labor payroll 60,000
Direct labor rate per hour 7.50
Factory overhead rate per direct labor hour 10.00
For the month of March 1989, prime cost was
Question 1 options:
A) $144,000
B) $120,000
C) $150,000
D) $ 90,000