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The following is the condensed record of the transactions as on 31st December 2019 relating to special contract completed during the year. Materials bought RS 2,500 Materials issued from the stores RS 1,500 Wages RS 2,900 Direct expenses RS 700 Works on cost 25% of direct wages Office on cost 10% of prime cost Contract price RS 6,000 material returned amounted to RS 200. You are required to calculate the prime cost. |
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Answer» You are required to calculate the prime cost. Prime cost = (2,500 + 1,500 + 2,900 + 700)-200 = RS 7,400 |
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