Use the information below to answer this question.
\(\begin{array}{c|c}
\text{Raw materials jan.} & 5,000 \\
\hline
\text{Raw materials dec.} & 5,800 \\
\hline
\text{Purchase of raw materials} & 45,000 \\
\hline
\text{Salary} & 61,000 \\
\hline
\text{Factory lubricant} & 2,050 \\
\hline
\text{plant depreciation} & 1,300 \\
\hline
\text{Factory insurance} & 1,250 \\
\end{array}\)
The prime cost for the company is
a
N169, 200
b
N44, 200
c
N55, 800
d
N230, 200
Explanation
Correct Option
aVideo Explanation
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Discussions (2)
Halymarich
9 years ago
The answer should b B. Bcos factory lubricant, plant depreciation and factory insurance are overhead expenses which re deducted after he prime cost.
toluakin008
1 year ago
the answer is (b) because there are not any direct or rubicants there the rest are factory expenses.so the right answer is (b)
