| ₦ | |
| 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 |
The prime cost is ____________
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Correct Answer: Option A
Explanation:
Prime cost = Cost of raw materials consumed + Manufacturing wages + Royalties
= 15600 + 42000 + 300
= ₦57,900
Prime cost = Cost of raw materials consumed + Manufacturing wages + Royalties
= 15600 + 42000 + 300
= ₦57,900