Question

Indirect material equal to 12000 direct labour 8000they're direct cost 2000 what will be the prime cost

Answer 1

Answer:

Prime Cost refer to the production cost which includes only direct cost i.e. cost of raw material, direct labour and direct expense but does not include the factory overheads. 

This can be presented as:

Direct Raw Material                  5000

Direct Labor                              4500

Direct Expenses                       8500

                                             -------------------------

PRIME COST                            18000

Explanation:

like this we have to do

Answer 2

Answer:

Indirect material equal to 12000 direct labour 8000they're direct cost 2000 what will be the prime cost