The following items (in millions) pertain to the Chan Corporation:

Chan€™s manufacturing cost system uses a three-part classification of manufacturing costs. There are two prime costs and one conversion cost: direct materials, direct manufacturing labour, and indirect manufacturing costs.
REQUIRED
1. Identify the prime costs. Identify the conversion costs.
2. Prepare an income statement and a supporting schedule of cost of goods manufactured.

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For Specific Date For Year 2013 Work in process, January 1, 201.3 Direct materials, December 31, 2013 Finished goods, December 31, 2013 $12.00 6.00 14.40 Plant utilities Indirect manufacturing labour Amortization-plant, building, S 6.00 24.00 and equipment Revenues 10.80 420.00 Accounts payable, December 31, 2013 24.00 Accounts receivable, January 1, 2013 0.00 Miscellaneous manufacturing overhead Marketing, distribution, and 12.00 Work in process, December 31, 2013 2.40 Finished goods, January 1, 2013 Accounts receivable, December 31, 2013 Accounts payable, January 1, 2013 Direct materials, January 1, 2012 48.00 36.00 48.00 36.00 customer-service costs Purchases of direct materials Direct manufacturing labour Plant supplies used Property taxes on plant 108.00 96.00 48.00 7.20 1.20