Question

Calculate prime cost from the following
information:
Opening stock of raw material = Rs. 12,500
Purchase raw material = Rs. 75,000
Expense incurred on raw material = Rs. 5,000
Closing stock raw material = Rs. 22,500
Wages Rs. 47,600 Direct expenses = Rs. 23,400

Answer 1

Answer:

2236(575)568555?57585

Answer 2

Given:

Opening stock of raw material = Rupees. 12,500

Purchase raw material = Rupees. 75,000

Expense incurred on raw material = Rupees. 5,000

Closing stock raw material = Rupees. 22,500

Wages Rupees. 47,600 Direct expenses = Rupees. 23,400

Raw material consumed=opening stock of material + purchase of raw material + Expense incurred on raw material - Closing stock of raw material

=12500+75000+5000-22500

=92500-22500

=70,000 Rupees

Prime cost = raw material consumed + Direct labour  = Direct expenses

=70,000+47,600+23,400

Prime cost=1,41,000 Rupees