The following information is taken from the records of Britton Company for March:Purchases:Direct ...

a.
   Britton Company
   Cost of Goods Manufactured Schedule
   For March

Direct materials:
   Beginning inventory   $4,400,000
   Purchases of direct materials      9,000,000
   Cost of direct materials available   $13,400,000
   Ending inventory      1,600,000
Direct materials used      $11,800,000
Direct manufacturing labour      6,000,000
Manufacturing overhead:
Rent (60%)   $2,400,000
Utilities (60%)   720,000
Indirect materials
($200,000 + $500,000 - $600,000)       100,000       3,220,000
Cost of goods manufactured      $21,020,000

b.
   Britton Company
   Income Statement
   For the Month of March

Sales      $36,000,000
Cost of goods sold
   Beginning inventory   $24,000,000
   Cost of goods manufactured   21,020,000
   Cost of goods available for sale   $45,020,000
   Ending inventory   16,000,000   29,020,000
Gross margin      $6,980,000
Other costs
   Supplies
   ($420,000 + $150,000 - $180,000)   $390,000
   Selling and administrative salaries   4,000,000
   Rent (40%)   1,600,000
   Utilities (40%)   480,000
   Advertising    700,000     7,170,000
Operating Income <Loss>      $(190,000)

c.
Prime costs   $11,800,000 
Conversion costs   $3,220,000 + $6,000,000 = $9,220,000
Indirect manufacturing costs = $3,220,000