Goodwin Enterprises Refer to Goodwin Enterprises.For April,prime cost incurred was

Question

Goodwin Enterprises  Refer to Goodwin Enterprises.For April,prime cost incurred was

Quizplus · Accepted Answer

Since prime cost includes direct materials and direct labor, we need to look for expenses related to those categories. The question does not provide a breakdown of expenses, but we can assume that other indirect costs such as rent, utilities, and salaries are not included in prime cost.

Therefore, we need to determine which expense is most likely to be direct material or direct labor. Without more information, it's difficult to determine with certainty. However, we can make an educated guess by looking at the amount of each expense option:

A) $78,000 - This is a relatively high amount for just direct materials or direct labor for one month. 
B) $84,000 - This is a plausible amount for both direct materials and direct labor combined. 
C) $51,000 - This is a relatively low amount for both direct materials and direct labor combined. 
D) $45,000 - This is a very low amount for both direct materials and direct labor combined.

Based on our analysis, the most likely answer is B) $84,000.