The Four-Leaf Clover Corporation makes two products, LC1 and LC2. Each product uses a different type of raw materials, and the company provides you with the following data for the most recent year:

You also learn that Four-Leaf Clover spent $125,000 on manufacturing overhead expenses during the year. The company allocates overhead to products using labor cost as the allocation basis.
Required:
Calculate:
a. The prime costs for LC1.
b. The cost of goods sold for LC1.
c. The conversion costs for LC2.
d. The cost of materials purchased for LC2.

Transcribed Image Text:

LC1 0,000 15,000 45,000 70,000 130,000 20,000 25,000 50,000 LC2 $45,000 50,000 80,000 $3 Beginning balance in raw materials inventory Beginning balance in work in process Beginning balance in finished goods Purchases of materials Direct labor Ending balance in raw materials inventory Ending balance in work in process Ending balance in finished goods Cost of goods sold 120,000 80,000 25,000 90,000 250,000