Loading [MathJax]/jax/output/HTML-CSS/jax.js
Home / Aptitude Tests / Accounting / Use the following in...

Use the following information to answer given question

Use the following information to answer given question

Opening stock of raw materials24,750Purchases of raw materials129,640Carriage on raw materials10,000Closing stock of raw materials45,000Factory supervisor's salary30,000Wages of factory hands50,000Royalties paid18,000Insurance of factories62,000Work-in-progress(opening)23,000Raw material returned12,200

The prime cost is

 

A.

₦152,190

B.

₦199,190

C.

₦169,190

D.

₦146,190

Correct answer is A

Prime cost is the total of all direct cost incurred during production. 

 

Direct material + direct labour+ direct cost

 

129,640 + 24750 + 10,000 - 12,000 = 152190