Use the following information to answer the question that follows

       N
Direct material used-----------------64,000
Direct labour--------------------------30,000
Production overheads--------------22,000
Work-in-progress at beginning-----9,000
Work-in-progress at close---------14,000

Prime cost of production is?

A.

N64,000

B.

N94,000

C.

N111,000

D.

N116,000

Correct answer is B

Prime cost = Direct materials cost + Direct labor cost

64,000 + 30,000 = 94,000