Direct materials used for manufacturing of finished goods
| Raw materials inventory, January 1 | $133,000 |
| Add: Raw Materials purchase during January | $190,000 |
| Total raw materials inventory available for consumption | $323,000 |
| Less: Raw materials inventory, January 31 | $124,000 |
| Raw materials used or consumed during January | $199,000 |
The prime cost, total manufacturing cost, the cost of goods manufactured for January
| Direct raw materials cost (working Note 1) | $199,000 | |
| Direct labor Cost | $300,000 | |
| Prime cost for January | $499,000 | |
| Applied manufactured overhead (60% of direct labor cost) | $180,000 | |
| Total manufacturing costs for January | $679,000 | |
| Add: Work in process inventory, January 1 | $233,000 | |
| Less: Work in process inventory, January 31 | $251,000 | |
| Cost of goods manufactured for January | $661,000 |
Cost of goods sold for January
| Finished goods inventory, January 1 | $125,000 |
| Add: Cost of goods manufactured for January | $661,000 |
| Total cost of goods available for sale | $786,000 |
| Less: Finished goods inventory, January 31 | $117,000 |
| Cost of goods sold for January | $669,000 |