Question

The following costs were incurred in May:
Direct materials $ 33,000
Direct labor $ 13,000
Manufacturing overhead $ 23,000
Selling expenses $ 16,000
Administrative expense $ 34,000
Prime costs during the month totaled:

Answer 1

Answer:

$46000

Explanation:

Given: Direct materials $ 33,000

           Direct labor $ 13,000

           Manufacturing overhead $ 23,000

           Selling expenses $ 16,000

           Administrative expense $ 34,000

Prime cost include all the cost of company that are directly used in the production of goods and serviced, like, cost of direct material, cost of direct labor, etc which are directly involved in the manufacturing of product.

Now finding prime cost for the month of May.

Prime cost= $Direct\ material+direct\ labor$

⇒ Prime cost= $33000+13000$

∴ Prime cost= $\ 46000$

Hence, the total prime cost for the month of May is $46000.