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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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