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

According to the information given, we know that Goodwin Enterprises uses prime cost as its cost accounting method. Prime cost includes direct materials and direct labor costs.

We are not given any information about indirect costs, so we cannot include them in our calculation.

The question asks us to determine the prime cost incurred in April. We are not given specific information about direct materials and direct labor separately, so we will need to use the total prime cost.

We are given no information about the products or services provided by Goodwin Enterprises, so we cannot use any cost drivers to allocate costs.

Therefore, the prime cost incurred in April is simply the total cost incurred during the month. The only option that is a plausible total cost is B) $84,000.