Abare Corporation reported the following data for the month of December: The prime cost for December was:
A)$129,000
B)$115,000
C)$109,000
D)$62,000

Question

Abare Corporation reported the following data for the month of December:  The prime cost for December was:
A)$129,000 
B)$115,000 
C)$109,000 
D)$62,000

Quizplus · Accepted Answer

To calculate the prime cost, we add direct materials and direct labor costs. From the given data, we can see that direct materials cost was $65,000 and direct labor cost was $50,000. Adding these two gives us a prime cost of $115,000 (option B). Therefore, option B is the correct answer.

Abare Corporation Reported the Following Data for the Month of December