Richardson & Sons purchased direct material worth $15,000 during the most recent period. At the end of the period the direct material account balance was $6000 larger than the beginning balance. Cost of goods sold was $150,000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are: Beginning Ending Work in process $75,000 $20,000 Finished goods $110,000 $60,000 What is the amount of prime cost added to production for the period? a. $29,000 b. $9,000 c. $33,000 d. $36,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6PA: During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of...
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Richardson & Sons purchased direct material worth $15,000
during the most recent period. At the end of the period the
direct material account balance was $6000 larger than the
beginning balance. Cost of goods sold was $150,000.
Overhead is applied at 50 per cent of direct labour cost.
Other account balances are:
Beginning Ending
Work in process $75,000 $20,000
Finished goods $110,000 $60,000
What is the amount of prime cost added to production for
the period?
a. $29,000
b. $9,000
c. $33,000
d. $36,000
Transcribed Image Text:Richardson & Sons purchased direct material worth $15,000 during the most recent period. At the end of the period the direct material account balance was $6000 larger than the beginning balance. Cost of goods sold was $150,000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are: Beginning Ending Work in process $75,000 $20,000 Finished goods $110,000 $60,000 What is the amount of prime cost added to production for the period? a. $29,000 b. $9,000 c. $33,000 d. $36,000
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