passwella.
Menu

WAEC Financial Accounting 2002 Question 9

Question 9

Manufacturing Accounts

Raw Materials: Stock 1/1/2000 N4,500; Purchases N30,000; Stock 31/12/2000 N6,000
Wages: direct N34,200; indirect N10,800
Factory expenses: rent N18,000; insurance N3,000
Work-in-progress: 1/1/2000 N3,750; 31/12/2000 N6,750
The prime cost is

  1. A.N68,700
  2. B.N65,700
  3. C.N62,700
  4. D.N58,200.
Show the answer and explanation

Answer: C (N62,700)

Explanation

28,500 + direct wages 34,200 = N62,700.