The following balances was exgtracted from the books of Oluwalambe Ltd, manufacturer, on 31st December 2007
| Stock of raw materials 1 - 1 - 2007 | 8000 |
|
Purchase of raw materials |
450000 |
|
Stock of raw materials 31 - 12 - 2007 |
95000 |
|
Direct wages |
65000 |
|
Indirect wages |
28000 |
|
Depreciation on plants |
32000 |
|
Factory rent |
3500 |
|
Work in progress 1- 1- 2007 |
32500 |
|
Work in progress 31 - 12- 2007 |
37500 |
The prime cost is
a
#500,000
b
#527,500
c
#530,000
d
#463,000
Explanation
Correct Option
aVideo Explanation
No video available
Post your Contribution
Share:
Discussions (2)
survivorno1
1 year ago
I don't think the answer is there.
Prime Cost=Direct Materials + Direct Labour
Direct Materials is the same as Raw Materials consumed.
Raw Materials Consumed=Opening raw materials+ Purchase of raw materials - Closing raw materials
which is 8000+450000-95000=363000
Prime Cost=363000+65000=428000
