Richardson & Sons Purchased Direct Material Worth $15 000 During

question 68

Multiple Choice

Richardson & Sons purchased direct material worth $15 000 during the most recent period. At the end of the period the direct material account balance was $6000 larger than the beginning balance. Cost of goods sold was $150 000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are:
What is the amount of prime cost added to production for the period?

• A) $9000
• B) $29 000
• C) $33 000
• D) $36 000

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Definitions:

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