passwella.
Menu

GCE Financial Accounting 1989 Question 42

Question 42

Manufacturing Accounts

Use the Manufacturing and Trading Accounts shown (X marks figures you must work out). What is the Prime Cost?

Diagram for this question
  1. A.₦62,000
  2. B.₦70,000
  3. C.₦78,000
  4. D.₦102,000
  5. E.₦114,000
Show the answer and explanation

Answer: D (₦102,000)

Explanation

Prime cost = materials 62,000 + direct labour 20,000 + direct expenses 20,000 = ₦102,000.