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JAMB Principles of Accounts 2013 Question 28

Question 28

Manufacturing Accounts

Opening stock of raw materials ₦75,000
Purchase of raw materials ₦330,000
Closing stock of raw materials ₦80,000
Direct wages ₦30,000
Carriages of raw materials ₦10,000
Determine the prime cost.

  1. A.₦525,000.
  2. B.₦515,000.
  3. C.₦465,000.
  4. D.₦365,000.
Show the answer and explanation

Answer: D (₦365,000.)

Explanation

Prime cost = materials used 335 000 + direct wages 30 000 = ₦365 000.