Reference no: EM132521373

Bergeron Inc. reported the following data for last year:

Work-in-process inventory, beginning          $100

Work-in-process inventory, ending              $150

Finished goods inventory, beginning            $180

Finished goods inventory, ending                $200

Direct labour cost                                   $300

Direct materials cost                              $500

Manufacturing overhead cost                  $400

Question 1: Which of the following is the prime cost?

Option 1: $700.

Option 2: $900.

Option 3: $800.

Option 4: $1,200.