Opening stock of Raw material is 180000 OMR , Freight Inwards 5000 OMR, Purchases of Raw material 730000 OMR, Purchase returns is 1000 OMR and Closing stock of Raw material is 28000 OMR, Wages is 85,000 OMR direct Expenses is 75000 OMR Calculate Prime cost. a. 1,059,000 OMR b. 984,000 OMR c. None of these d. 1,046,000 OMR

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Opening stock of Raw material is 180000 OMR , Freight Inwards 5000 OMR, Purchases of Raw material 730000 OMR, Purchase returns is 1000 OMR and Closing stock of Raw material is 28000 OMR, Wages is 85,000 OMR direct Expenses is 75000 OMR Calculate Prime cost.
a.
1,059,000 OMR
b.
984,000 OMR
c.
None of these
d.
1,046,000 OMR
Expert Solution
Step 1

Opening stock = 180,000 OMR

Freight inwards = 5000 OMR

Raw material purchase = 730,000 OMR

Purchase return = 1000 OMR

Net purchase = 730,000-1000 = 729,000 OMR

Closing stock = 28000 OMR

Wages = 85,000 OMR

Direct expenses = 75000 OMR

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