Stayton Enterprises
Inventories: April 1 April 30
Raw material $20,000 $17,000

Work in process 12,000 8,000

Finished goods 30,000 39,000

Additional information for March:

Raw material purchased $45,000
Direct labor payroll $36,000

Direct labor rate per hour $ 8.00

Overhead rate per direct labor hour $ 10.00
Refer to Stayton Enterprises.For April,prime cost incurred was

Question

Stayton Enterprises

Inventories:	April 1	April 30
Raw material	$20,000	$17,000
Work in process	12,000	8,000
Finished goods	30,000	39,000
Additional information for March:
Raw material purchased	$45,000
Direct labor payroll	$36,000
Direct labor rate per hour	$ 8.00
Overhead rate per direct labor hour	$ 10.00

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

Quizplus · Accepted Answer

Prime cost is the sum of direct materials and direct labor costs. Since no information is given regarding indirect costs, we can assume that the total cost incurred by Stayton Enterprises for April was equivalent to prime costs incurred. Therefore, the only possible answer is B) $84,000.