Use the information below to answer this question: Raw materials Jan.5,000Raw materials Dec.5,800Purchase of raw materials45,000Salary61,000Factory lubrican...

Use the information below to answer this question:

$\begin{array}{cc}\text{Raw materials Jan.}& 5,000\\ \text{Raw materials Dec.}& 5,800\\ \text{Purchase of raw materials}& 45,000\\ \text{Salary}& 61,000\\ \text{Factory lubricant}& 2,050\\ \text{plant depreciation}& 1,300\\ \text{Factory insurance}& 1,250\end{array}$

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