Question 2

The following data pertains to Lam Co.'s manufacturing operations:

Inventories 4/1 4/30 Direct Materials $18,000 $15,000 Work in Process 9,000 6,000 Finished Goods 27,000 36,000

Additional information for the month of April:

Direct materials purchased $32,000 Direct labor $30,000 Direct labor rate per hour $10.00 Factor overhead incurred $40,000

Overhead is applied at $12 per direct labor hour.

For the month of April, prime cost incurred was: $75,000. $66,000. $65,000. $62,000.