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 a statement of comprehensive income and a supporting schedule of cost of goods manufactured.

Transcribed Image Text:

For Specific Date For Year 2016 or in process, Janary 1,2016 $6.00 24.00 4.40 Depreciation--plant, building,and 0.80 $12.00 Plant utilities Direct materials, December 31, 2016 6.00 Indirect manufacturing labour inished goods, December 31, 2016 equipment For Specific Date For Year 2016 Accounts payable, December 31, 2016 Accounts receivable, January 1, 2016 24.00 Revenues 60.00 Miscellaneous manufacturing 420.00 12.00 overhead Marketing, distribution, and customer-service costs Purchases of direct materials Direct manufacturing labour Plant supplies used Property taxes on plant Work in process, December 31, 2016 2.40 108.00 Finished goods, January 1, 2016 Accounts receivable, December 31, 2016 Accounts payable, January 1, 2016 Direct materials, January 1, 2016 48.00 36.00 48.00 36.00 96.00 48.00 7.20 1.20