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9 June, 07:50

Prime Cost and Conversion Cost Grin Company manufactures digital cameras. In January, Grin produced 4,000 cameras with the following costs: Direct materials $400,000 Direct labor 80,000 Manufacturing overhead 320,000 There were no beginning or ending inventories of WIP. Required: If required, round your answers to the nearest cent. 1. What was the total prime cost in January

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  1. 9 June, 08:16
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    Prime costs = $480,000

    Explanation:

    Giving the following information:

    Grin produced 4,000 cameras with the following costs:

    Direct materials $400,000

    Direct labor 80,000

    Manufacturing overhead 320,000

    To calculate the prime costs we need to use the following formula:

    Prime costs = direct material + direct labor

    Prime costs = 400,000 + 80,000 = $480,000
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