Items 1 through 3 are based on the following information pertaining to Arp Co.’s manufacturing operations:

Inventories

3/1/05

3/31/05

Direct materials

$36,000

$30,000

Work in process

18,000

12,000

Finished goods

54,000

72,000

Additional information for the month of March 2005:

Direct materials purchased

$84,000

Direct manufacturing labor payroll

60,000

Direct manufacturing labor rate per hour

7.50

Factory overhead rate per direct labor hour

10.00

For the month of March 2005, prime cost was

  1. $ 90,000
  2. $120,000
  3. $144,000
  4. $150,000

For the month of March 2005, conversion cost was

  1. $ 90,000
  2. $140,000
  3. $144,000
  4. $170,000

For the month of March 2005, cost of goods manufactured was

  1. $218,000
  2. $224,000
  3. $230,000
  4. $236,000