FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
According to the information given in the table below, which of the following is Prime Cost?
Opening Stock Raw Materials | 28000 |
Purchases | 128000 |
Freight in | 2800 |
Purchase return raw Material | 1800 |
Wages paid to labor | 78000 |
Closing Stock Raw Materials | 18000 |
Select one:
a.
242300
b.
226000
c.
217000
d.
239500
Expert Solution
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Step 1 Formula to calculate prime cost
Prime cost = Direct Material cost + Direct Labor cost
Direct Material consumed = Opening Stock + Purchases + Freight inward costs - Purchase returns - Closing stock
Step by stepSolved in 2 steps with 1 images
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