(CGM and CGS) Brooke Company produces miniature furniture for dollhouses.

The company’s Raw Materials Inventory account includes the costs of both di¬ rect and indirect materials. Account balances for the company at the beginning and end of August 1997 are shown below:

During the month, Brooke Company purchased $85,000 of raw materials; direct materials used during the period amounted to $68,000. Factory payroll costs for August were $91,300 of which 85 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled .x $81,200 for August.

a. What amount of prime cost was incurred in August?

b. What amount of conversion cost was incurred in August?

c. Prepare a schedule of cost of goods manufactured.

d. Prepare a schedule of cost of goods sold.LO1

Transcribed Image Text:

Raw Materials Inventory Work in Process Inventory Finished Goods Inventory AUGUST 1 $23,300 AUGUST 31 $17,400 32,500 18,000 29,300 26,200