The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the direct materials cost ($). O a. 15,000 O b. 5,000 Oc 45,000 d. 10,000 e. 30,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that
direct labor cost is three times the direct materials cost and that the manufacturing overhead cost
was two times the direct materials cost. Calculate the direct materials cost ($).
O a. 15,000
O b. 5,000
Oc 45,000
d. 10,000
e. 30,000
Transcribed Image Text:The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the direct materials cost ($). O a. 15,000 O b. 5,000 Oc 45,000 d. 10,000 e. 30,000
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