Use the information below to answer this question: Raw materials Jan. 5,000 Raw materials Dec. 5,800 Purchase of raw materials 45,000 Salary 61,000 Factory ...

Assessment: JAMB UTME - Principles of Accounts - 2015 Subject: Financial Accounting

Question 1 Report

Use the information below to answer this question:

Raw materials Jan. 5,000
Raw materials Dec. 5,800
Purchase of raw materials 45,000
Salary 61,000
Factory lubricant 2,050
plant depreciation 1,300
Factory insurance 1,250

The prime cost for the company is

Answer Details
The prime cost are direct cost,direct material cost, direct labour cost and direct expenses.

Therefore:

Raw materials (jan)5000

Add purchases 45,000

Less raw materials (dec) 5,800

Cost of raw materials consume 44,200

Prime cost 169,200

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