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WAEC Financial Accounting 2024 Question 6

Question 6

Manufacturing Accounts

In manufacturing account, wages of machine operators are classified as

  1. A.prime cost.
  2. B.factory overheads.
  3. C.work-in-progress.
  4. D.administrative overheads.
Show the answer and explanation

Answer: A (prime cost.)

Explanation

Machine operators work directly on the product, so their wages are direct labour, part of prime cost.