From the Following Information for the Bentwater Company,compute Prime Costs

question 22

Essay

From the following information for the Bentwater Company,compute prime costs and conversion costs for the current period.

inventories	Begining	Ending
Raw material	$9,900	$7,600
Work in process	44,500	37,800
Finished goods	36,580	61,300

Raw material purchased during the period cost $40,800;overhead incurred and paid or accrued for the period was $21,750;and 23,600 direct labor hours were incurred at a rate of $13.75 per hour.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

MACRS Depreciation

The Modified Accelerated Cost Recovery System, a method of depreciation used for tax purposes in the United States that allows for accelerated depreciation over the asset's life.

Depreciation Schedule

A table that shows the reduction in value of a company's assets over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.