Question
Read the below information related to Z limited and
calculate the prime cost from the following information: Direct material purchased: Rs. 6,00,000 Direct material consumed: Rs. 4,00,000 Direct labour: Rs. 170,000 Direct expenses: Rs. 35,000 Manufacturing overheads: Rs. 10,000 Indirect Factory Expenses: Rs. 20,000Solution
DMC+DL+DE = 400000+170000+35000 =605000
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