Explanation:
The computations are shown below:
1. For Prime cost
= Raw material used + Direct labor
where,
Raw material used is
= Beginning raw material inventory + raw material purchased - ending raw material inventory
= $134,000 + $191,000 - $124,000
= $201,000
And, the direct labor is $300,000
So, the prime cost is
= $201,000 + $300,000
= $501,000
2. For total manufacturing cost:
= Direct material used + direct labor cost + manufacturing overhead cos
= $201,000 + $300,000 + $300,000 × 60%
= $681,000
3. For cost of goods manufactured:
Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process
= $233,000 + $681,000 - $251,000
= $663,000
4. For cost of goods sold
= Beginning finished goods + Cost of goods manufactured - ending finished goods
= $126,000 + $663,000 - $117,000
= $672,000
5. For balance in the manufacturing overhead account
= Actual manufacturing overhead - applied manufacturing overhead
= $170,000 - $180,000
= $10,000 credit balance i.e over applied
