Reference no: EM132596395

STOCK:

RAW MATERIAL

EARLY SEPTEMBER = $ 30,000, END SEPTEMBER = $ 20,000

GOODS IN PROCESS

EARLY SEPTEMBER = $ 50,000, END OF SEPTEMBER =?

FINISHED GOODS

EARLY SEPTEMBER = $ 80,000, END SEPTEMBER = $ 70,000

Following is information during September:

• Purchase of $ 450,000 in raw materials
• Direct labor costs $ 300,000
• Indirect labor costs are $ 100,000
• Helper costs $ 50,000
• Sales of $ 1,987,000
• Factory depreciation expense of $ 200,000
• Factory maintenance costs $ 50,000
• Sales of $ 1,600,000
• Gross profit of $ 500,000

Based on the data above:

Question 1: What is the value of the inventory in the final process?

Question 2: What is the prime cost & conversion cost?