What is the value for prime cost.?
Inventory (01/10/18)
Raw materials 28800
Work in progress 37000
Finished goods 33600
Sales (114000 @c5) 57000
Carriage on raw materials 1470
General expenses 25200
Selling expenses 51840
Plant and machinery 250280
Land 50000
Bank overdraft 32120
Ordinary share capital 200000
8%
Trade receivables 36433
Discount allowed 1440
Sundry payable 56636
Trade investment 8840
Advertising 2250
Return inwards 9000
Discount received 1920
Carriage outwards 2280
Production wages 126000
Office salaries 4860
Purchases of raw materials 168000
Noodles 15000
Factory rent 13600
Office insurance 40800
Inventory
Raw materials 35400
Work in progress 39120
Loose tools 3000
Additional information
During the year, 129000 pieces were completed. The closing inventory of finished goods is valued at the cost price per nose mask produced.
Goods manufactured during the year are to be transferred to the trading account at GHc 390000.
Provide for doubtful debts at the rate of 2% of receivables.
Advertisement was three months prepaid.
What is the value for prime cost.?
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