Ellerson Company provided the following information for the last calendar year:
Beginning inventory:
Direct materials ...... $68,000
Work in process ...... 29,400
Finished goods ...... 43,200
Ending inventory:
Direct materials ...... $70,400
Work in process ...... 40,000
Finished goods ...... 42,100
During the year, direct materials purchases amounted to $278,000, direct labor cost was $189,000, and overhead cost was $523,000. During the year, 100,000 units were completed.
Required:
1. Calculate the total cost of direct materials used in production.
2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost.
3. Of the unit manufacturing cost calculated in Requirement 2, $2.70 is direct materials and
$5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?