The following information is from Q Inc., which currently uses full absorption costing to report operating income. The Company is concerned about short-term profitability given the economic downturn. Currently, individual managers set their activity targets. For example, marketing managers set selling prices, purchasing managers set procurement policies, and product line managers set production schedules.

Inventory Beginning Ending

Raw materials $10,000 $9,500

Work in process 11,000 12,500

Finished goods 14,000 13,500

Total inventory $35,000 $35,500

Item Produced Sold

Number of units 240,000 240,000

Items Amount Cost behavior

Revenues $460,000 Variable

Direct materials 122,000 Variable

Direct labor 92,000 Variable

Indirect labor (allocated) 8,000 Fixed

Factory supplies (allocated) 22,000 Fixed

Factory utilities (allocated) 14,000 Variable

Factory depreciation (allocated) 90,000 Fixed

Selling expenses 16,000 Variable

General expenses 60,000 Fixed

Administrative expenses 40,000 Fixed

compute the following (insert excel rows/ cells to label and show all your work for full credit)

a. total prime cost

b. raw materials purchased

c. Costs of goods manufactured

d. costs of goods sold

e. full absorption cost per unit

f, contribution margin per unit