Question on: JAMB Accounting - 2023
Determine the prime cost using the data in the table:
|
₦ | |
|
Manufacturing wages | 42000 |
|
Factory rent | 880 |
|
Raw materials: Stock 1/1/16 | 1000 |
|
Purchases | 16000 |
|
Stock 31/12/16 | 1400 |
|
Depreciation of Plants and Machinery | 800 |
|
Royalties | 300 |
|
Indirect wages | 18,000 |
|
General indirect expenses | 620 |
A
₦57,900
B
₦42,000
C
₦45,000
D
₦78,200
Ask EduPadi AI for a detailed answer
Correct Option: A
Prime Cost = Cost of raw materials consumed + Manufacturing wages + Royalties
= 15600 + 42000 + 300
= ₦57,900
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