Question

At the start of a month a company had work in process inventory valued at $20,000....

At the start of a month a company had work in process inventory valued at $20,000. At the end of the month work in process inventory amounted to $15,000 and finished goods inventory to $35,000. Opening finished goods totalled $56,000. Raw materials inventories totalled $45,000 and $31,000 at the beginning and end of the month respectively, and the company purchased raw materials costing $139,000 during the month. Direct labour hours worked during the month were 1,500 and the relevant rate of pay was $20 per hour. Overhead was allocated to production at the rate of $36 per direct labour hour. The company uses normal costing.

Find prime cost and Total manufacturing costs debited to Work-in-Process account

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