Question 5 Inventory balances for KBD, Inc. for the most recent year appears below: Direct materials Work in process Finished goods January 1 $16,000 $57,000 $61,000 December 31 $83,000 $39,000 $74,000 KBD, Inc. reported the following costs during the most recent year: Direct materials purchased Direct labor Factory utilities Depreciation, office equipment Advertising Indirect labor Property taxes, factory building Shipping goods to customers $210,000 $225,000 $ 93,000 $ 37,090 $ 78,000 $ 46,000 $ 24,000 $ 55,000 KBD, Inc. applies overhead to products using a pre-determined overhead rate of $12 per direct labor hour and pays its direct labor workers $18 per hour. KBD, Inc.'s prime costs for the most recent year were equal to: $435,000 $333,000 $368,000 $324,000 $502,000