Question

From the given information, calculate prime cost- Raw material consumed:
Rs.4,10,000/- Direct wages: Rs.70,000/- Direct expenses: Rs.40,0001- Factory
overhead: Rs. 50,000/-
O Rs.1,10,000
O Rs.5,20,000
O Rs.5,70,000
O Rs.1,60,000​

Answer 1

Answer:

prime cost = 410000+70000+40000+50000=570000

Answer 2

Prime cost will be ₹520000.

Explanation:

Given: Raw material consumed:Rs.4,10,000/-

           Direct wages: Rs.70,000/-

           Direct expenses: Rs.40,000/-

           Factory overhead: Rs. 50,000/-

Asked: Prime cost

Formula: Prime cost = All direct cost

Solution:

• Prime cost is the cumulation of all the direct cost associated with the product, it does not includes fixed cost.
• Prime cost = Direct material + direct wages + direct expenses.
• Prime cost = 410000+70000+40000 = ₹520000
• Thus, the prime cost will be ₹520000.