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Calculate prime costs; cost of goods manufactured for month

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Please select the correct answer in the two exercises below and explain briefly how you calculated it.

1. The following costs were incurred in August:

Direct materials \$21,800
Direct labor \$19,100
Selling expenses \$14,500

Prime costs during the month totaled:
a. \$95,200
b. \$60,300
c. \$40,900
d.\$21,800

2. Green Company's costs for the month of August were as follows: direct materials, \$28,500; direct labor, \$34,200; selling, \$13,500; administrative, \$12,000; and manufacturing overhead, \$43,500. The beginning work in process inventory was \$15,700 and the ending work in process inventory was \$8,300. What was the cost of goods manufactured for the month?

a. \$133,600
b. \$106,200
c. \$113,600
d. \$139,600

Solution Preview

See attached file.

1. The following costs were incurred in August:

Direct materials \$21,800
Direct labor \$19,100