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
N169,200
N44,200
N55,800
N230,200
Correct answer is A
The prime cost are direct cost,direct material cost, direct labour cost and direct expenses.
Therefore:
Raw materials (jan)5000
Add purchases 45,000
Less raw materials (dec) 5,800
Cost of raw materials consume 44,200
Prime cost 169,200