Inventory balances for the James Enterprises in February are as follows: $\begin{array}{lrr}&\text { February } 1&\text { February } 28\
\text { Raw materials } & \$ 27,000 & \$ 21,000 \
\text { Work in process } & 48,000 & 37,200 \
\text { Finished goods } & 108,000 & 90,000
\end{array}$ During February,purchases of direct materials were $36,000.Direct labour and factory overhead costs were $60,000 and $84,000,respectively.
What were the prime costs for February?
A)$81,000
B)$87,000
C)$96,000
D)$102,000

Question

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The Answer of Inventory balances for the James Enterprises in February are as follows: $\begin{array}{lrr}&\text { February } 1&\text { February } 28\
\text { Raw materials } & \$ 27,000 & \$ 21,000 \
\text { Work in process } & 48,000 & 37,200 \
\text { Finished goods } & 108,000 & 90,000
\end{array}$ During February,purchases of direct materials were $36,000.Direct labour and factory overhead costs were $60,000 and $84,000,respectively.
What were the prime costs for February?
A)$81,000
B)$87,000
C)$96,000
D)$102,000

Inventory Balances for the James Enterprises in February Are as Follows