WAEC Accounting 2019 Objective — Question 36
Question 36 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.
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(using: Cost of raw materials available N32,000; Manufacturing wages N10,000; Factory expenses N5,000; Royalty N3,000; Factory rent N2,000; Depreciation of plant and machinery N5,000; Closing stock of raw materials N3,000.) The prime cost is
- A. $57,000
- B. $45,000
- C. $42,000Correct
- D. $39,000
Explanation
Prime cost = Direct cost = $(32,000-3,000)+$10,000+$3,000 = $42,000.
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