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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
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
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