At Allen Company, manufacturing overhead is applied based on direct labor hours. Overhead was estimated to be $$700,000$ and direct labor hours were estimated to be $350,000.$

Actual direct labor costs and actual direct labor hours for the year amounted to $$800,000$ and $450,000$ hours.

In addition, Allen Company incurred the following actual costs during the year:

$$ Administrative expenses, $$100,000$

$$ Depreciation expense on fixed assets, $$800,000(75\%$ of the depreciation expense was related to manufacturing activities$)$

$$ Indirect material costs, $$50,000$

$$ Indirect labor costs, $$100,000$

$$ Utility expense on the manufacturing facility, $$125,000$

$$ Insurance expense on the manufacturing facility, $$40,000$

$$ Marketing expenses, $$75,000$

$$ Sales & promotion expenses, $$25,000$

Allen Company had the following inventory balances at the beginning and end of the year:

January $1$ December $31$

Finished goods $$450,000$ $$500,000$

Work in process $600,000700,000$

Raw $($direct$)$ materials $350,000375,000$

During the year, the company purchased $$300,000$ of raw materials and generated sales of $$2,500,000.$

$5.$ What amount of raw materials were used during the period?

$6.$ What is the amount of prime costs?