PROBLEM 3 Product Cost Flow 20 POINTS Basil Industries reported the following information for December: Beginning balance, Raw Materials Inventory $187,500 Beginning balance, Work in process Inventory 300,000 Beginning balance, Finished Goods Inventory 106,250 Purchases of raw materials 337,500 Factory electricity 62,500 Direct labor payroll 200,000 Depreciation on factory equipment 218,750 Insurance on factory building 50,000 Indirect materials used in production 43,750 Total raw materials used in production 406,250 Indirect labor payroll 150,000 Cost of goods manufactured 1,250,000 Cost of goods sold 1,312,500 Required: Using the information provided above, calculate the following items below. Note: total raw materials used in production includes both direct and indirect materials. Assume actual manufacturing overhead = applied overhead. 3a: What was the balance in ending raw materials at December 31? 3b: What was the total manufacturing cost for December? 3c: What was the cost of the direct materials used by Basil in production? 3d: What was the ending balance in Basil’s Finished Goods Inventory account?