Premium Ltd manufactures leather bags. During the month of July, Premium Ltd manufactured 500 leather bags. The manufacturing costs and other expense data for the month of July are as follows.

Direct Material $80,000

Direct Labour $25,000

Manufacturing Overhead Cost $75,000

Selling & Distribution Cost $15,000

Administrative Expenses $12,000

Required

a) From the information, determine the total amount of: 1. Prime cost 2. Conversion cost 3. Product cost 4. Period cost

b) Calculate the cost to produce one leather bag