manufacturing costing system uses a? three-part classification of direct? materials, direct manufacturing? labor, and manufacturing overhead costs. Read the requirements 

 

Requirement 1. Calculate total prime costs and total conversion costs.

      

Total prime costs		million
Total conversion costs		million

                  

Partial Schedule of Cost of Goods Manufactured
(in millions)
Direct materials used	$114
Direct manufacturing labor costs	48
Total indirect manufacturing overhead costs	58
Manufacturing costs incurred during 2017	220
Add: Beginning work-in-process inventory, Jan. 1, 2017	19
Total manufacturing costs to account for	239
Less: Ending work-in-process inventory, Dec. 31, 2017	4
Cost of goods manfactured	$235

                                                     

For Specific Date			For Year 2017
Work-in-process inventory, Jan. 1, 2017	$19		Plant utilities	$2
Direct materials inventory, Dec. 31, 2017	7		Indirect manufacturing labor	23
Finished goods inventory, Dec. 31, 2017	11		Depreciation—plant and equipment	8
Accounts payable, Dec. 31, 2017	21		Revenues	356
Accounts receivable, Jan. 1, 2017	55		Miscellaneous manufacturing overhead	17
Work-in-process inventory, Dec. 31, 2017	4		Marketing, distribution, and customer-service costs	96
Finished goods inventory, Jan 1, 2017	45		Direct materials purchased	81
Accounts receivable, Dec. 31, 2017	37		Direct manufacturing labor	48
Accounts payable, Jan. 1, 2017	50		Plant supplies used	3
Direct materials inventory, Jan. 1, 2017	40		Property taxes on plant	5

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