Part I- Exercise cost by orders (Value: 14 points)

The accounting records indicate certain balances in the inventory accounts for 20xx: Inventory Balances 1/1/20xx 12/31/20xx Material inventory $24,000 $13,000 Inventory of products in process (Work in Process) -0- $21,000 Finished Goods Inventory $11,000 $26,000

Other data (applies to the period from 1/1/20xx to 12/31/20xx) Prime costs were $383,000. Materials were purchased 10 times the amount of what was in materials inventory at the beginning of the year. Direct Labor costs represent 40% of conversion costs which were $330,000. The company generates, on average, a 34% gross profit (Gross Margin).