Beginning Raw Material Inventory 6000 Add: Material Purchased 15000 Less: Ending Raw Material Inventory -8000 13000 Direct Labour cost 10500 Prime costs 23500 Factory Overhead costs Depreciation of Machinery 1000 Insurance (4500*80%) 3600 Factory Rent 2000 Factory Supervision 3000 Utilities Expenses (2500*70%) 1750 Indirect labour costs 3500 14850 Manufacturing costs 38350 Add: Beginning work in process Inventory 12000 Less: Ending work in process Inventory -7000 5000 Cost of goods manufactured 43350 Add: Beginning finished goods inventory 2100 Less: Ending finished goods inventory -800 13000 Cost of goods sold 44650 b. Compute cost of good sold