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Prime cost 100,000
Conversion Costs 90,000
Factory overhead 6o % of Direct Labor
Raw material, end 30,000
Purchases 50,000

Compute for the beginning of the Raw material


Prime cost = Raw materials + Direct labor
100,000 43,750 56,250

Conversion Costs = Direct Labor + Fatory Overhead
90,000 x 60%X

90,000 = 160%X
160% 160%

90,000 divided by 160% = x Direct Labor
56,250
33,750 60% Factory Overhead



Raw materials beg 23,750
Add: Purchases 50,000
Raw materials available for use 73,750
Less: Raw materials, ending 30,000
Raw materials used 43,750

     
 
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