[Out25]

The accounting records of Carlton Ltd. a small construction company, showed the following construction and operating costs for the fiscal year ended 2008:
Direct materials $718,000
Direct labour 436,000
Indirect materials 108,000
Indirect labour 140,000
Construction utilities 108,250
Selling and administrative expenses 325,000

a. What amount of prime cost was incurred in 2008?
$ (Answer in whole dollars.)

b. What amount of conversion cost was incurred in 2008?
$ (Answer in whole dollars.)

c. What was total product cost for 2008?
$ (Answer in whole dollars.)

[rehmanvohra]

We usually do not answer questions. We try to help every one where the question is also accompanied by the attempted answer. However, you can be guided to the answer:

1. Prime Cost = Direct Materials + Direct Labor
2. Conversion costs = Prime Costs + Manufacturing overheads (both fixed and variable)
3. Total costs = Prime costs + overheads + selling and administration costs

Use these bases to get the answer.