5/ Craigmont Company\'s direct materials costs are $4,600,000, its direct labor

Question

5/ Craigmont Company's direct materials costs are $4,600,000, its direct labor costs total $8,440,000, and its factory overhead costs total $6,440,000. Its prime costs total:

Multiple Choice

$13,040,000.

$11,040,000.

$14,880,000.

$6,600,000.

$19,480,000.

6/ Calculate the cost of goods sold using the following information:

Multiple Choice

$682,900.

$696,900.

$689,500.

$775,800.

$704,300.

7/ Using the information below, calculate cost of goods sold for the period:

Multiple Choice

$814,000.

$809,000.

$510,000.

$555,000.

$388,000.

Direct materials $ 299,300 Direct labor 132,800 Factory overhead costs 264,800 General and administrative expenses 86,300 Selling expenses 49,600 Work in Process inventory, January 1 119,300 Work in Process inventory, December 31 126,700 Finished goods inventory, January 1 232,900 Finished goods inventory, December 31 239,500

Explanation / Answer

Ans Ques 5. Craigmont Company's direct materials costs are $4,600,000, its direct labor costs total $8,440,000, and its factory overhead costs total $6,440,000.The question is asking the total Prime Cost before we answer the same lets understand what is prime cost which is basically the aggregate of direct material and labour cost and excludes fixed cost and overhead expenses.

Accordingly Craigmont Company Prime Cost is computed as follows:

Prime cost=Direct Material Cost + Direct Labor Cost

                = $4600,000+$8440,000

                =$13040000

Prime Cost=$13,040,000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.