Heart manufacturing company makes specialty tols. In January, Heart incurs manufacturing costs of $10,000,000 for direct materials, direct labors, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were:

Jan 1 Jan31

Raw materials $300,000 $ 500,000

Work in process $600,000 $400,000

Finished Goods $400,000 $200,000

At the end of January, there was $1,000 of overapplied overhead.

Instructions:

(a) Determine the ocst of raw materials purchased in Januray

(b) Prepare a cost of goods manyfactyred schedule for January 2012.

(c) Compute the cost of goods sold for Janurary.