T. Zvinowanda's cost of raw materials consumed for the year was $101 600. Direct wages paid were $18 000, with a further $3 000 owing at the year end. Royalties of $10 000 were also paid, a direct cost. Calculate the prime cost for the year.

Model answer

$132 600

Also accepted: 132600, 132 600

Explanation

101 600+(18 000+3 000)+10 000 = $132 600.

Derived from ZIMSEC Principles of Accounting 4051/2 Paper 2, June 2024, Q1

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