Accounts (Principles of Accounts)Manufacturing accountsJAMB
Extract from the books of Zenith Furniture Ltd: Direct materials used ₦120,000 · Direct labour ₦80,000 · Direct expenses ₦10,000 · Factory overheads ₦40,000 · Work in progress at start ₦15,000 · Work in progress at end ₦25,000
What is the prime cost?
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Answer: D. ₦210,000
Prime cost = direct materials 120,000 + direct labour 80,000 + direct expenses 10,000 = ₦210,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.