The following data are from Westfield Manufacturing for the month of October: Item Amount Direct materials used $182,000 Factory utilities $14,000 Production workers' wages $248,000 Factory building depreciation $22,000 Sales commissions $36,000 Quality control inspectors' salaries $18,000 Administrative expenses Compute the prime costs. $42,000 A. $430,000 B. $248,000 C. $182,000 D. $462,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Can you explain this general accounting question using accurate calculation methods?

The following data are from Westfield Manufacturing for the month of October:
Item
Amount
Direct materials used
$182,000
Factory utilities
$14,000
Production workers' wages
$248,000
Factory building depreciation
$22,000
Sales commissions
$36,000
Quality control inspectors' salaries $18,000
Administrative expenses
Compute the prime costs.
$42,000
A. $430,000 B. $248,000 C. $182,000 D. $462,000
Transcribed Image Text:The following data are from Westfield Manufacturing for the month of October: Item Amount Direct materials used $182,000 Factory utilities $14,000 Production workers' wages $248,000 Factory building depreciation $22,000 Sales commissions $36,000 Quality control inspectors' salaries $18,000 Administrative expenses Compute the prime costs. $42,000 A. $430,000 B. $248,000 C. $182,000 D. $462,000
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