Allister, Inc employs a normal costing system. The following information pertains to the year just ended.

- total manufacturing costs were RM2,000,000

- cost of goods manufactured was RM1,950,000

- applied manufacturing overhead was 30% of total manufacturing costs

- manufacturing overhead was applied to production at a rate of 80% of direct labour cost

- work-in-process inventory on January 1 was 75% of work-in-process on December 31.

Required:

a. Compute the prime cost for the year

b. Compute the value of the companys work-in-process inventory on December 31