Reference:
Frosting Corp -What Was the Total Prime Costs for the Period?
A)$20,000

question 20

Multiple Choice

Reference:
Frosting Corp. has provided the following relating to the most recent month (August 31, 2016) of operations, for their main product, cupcakes $$\begin{array} { l r } \text { Baker's salaries } & 20,000 \\\text { Finished goods inventory, beginning } & 18,000 \\\text { Finished goods inventory, ending } & 20,000 \\\text { General \& administrative expenses } & 20,000 \\\text { Indirect materials } & 17,500 \\\text { Production Supervisor, Salary } & 21,000 \\\text { Purchases of raw materials } & 28,000 \\\text { Raw materials inventory, ending } & 19,000 \\\text { Raw materials inventory, beginning } & 18,000 \\\text { Rent on production factory } & 19,000 \\\text { Rent, retail store } & 18,000 \\\text { Sales } & 243,000 \\\text { Utilities on production factory } & 17,500 \\\text { Utilities, retail store } & 17,000 \\\text { Wages, retail staff } & 20,000 \\\text { WIP inventory, beginning } & 19,500 \\\text { WIP inventory, ending } & 21,500\end{array}$$
-What was the total prime costs for the period?

• A)$20,000
• B)$47,000
• C)$27,000
• D)$95,000

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Definitions:

Goods and Services

The outputs produced by the economy, where goods are tangible objects and services are intangible offerings that satisfy consumer needs or wants.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced over a specific period.

GDP

Gross Domestic Product, the total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Per Capita GDP

The gross domestic product of a country divided by its population, giving an average economic output per person.