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
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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