Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

None

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
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS