Accounts - Principles of Accounts jamb 1999

Lawal and co makes blocks and sell to builders.
In computing prime cost, which of the following costs would be considered appropriate?

a

Cement, sand and carriage outwards

b

Water carriage inwards and cement

c

Sales boys'wages, cement and sand

d

Carriage outwards,carriage inwards and cement

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Correct Option
a

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Discussions (3)

Dboy1111
5 years ago

Why

lankee22
5 years ago

The correct option should be "b" because the option has carriage outward which is an expense and which should not be included in the computation of the prime cost of a company

ixfran6
3 years ago

please how

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