Accounting 0452 · IGCSE · Manufacturing accounts

Manufacturing accounts — practice question

A manufacturing company supplied the information below: cost of raw materials $\$186\,000$; direct wages $\$75\,000$; machinery depreciation $\$45\,000$; factory supervisor’s salary $\$32\,000$; factory rent $\$24\,000$; machinery repairs $\$18\,000$. What was the prime cost of production?

  • A$\$186\,000$
  • B$\$261\,000$
  • C$\$293\,000$
  • D$\$380\,000$

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