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Direct material costs $2,000,000 - Direct labor costs 1,000,000 - Indirect labor costs 600,000 - production 200000 calculate prime cost per unit ?

Accounting Cost Accounting Financial Accounting CMA
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/04
Upvote (1) Views (6) Followers (4) Answers (5) Report Question
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Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

Prime cost per unit = $2,000,000 +  1,000,000 /2,000,00

 Prime cost per unit =  $15 per unit 

Syed Ammar
by Syed Ammar , Senior Accounts Officer , The City Schools (Group Head office)

cost per unit15 $ only   ,

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Prime cost per unit:

(Direct material + Direct labor) / production  = (2,000,000 +1,000,000) /200,000 =3,000,000/200,000= $15 per unit.

 

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

Prime cost is3000000/200000=15 per unit

Islam Abd-Elsalam
by Islam Abd-Elsalam , Internal Audit Manager , Western Desert Operating Petroleum Company (WEPCO)

cost per unit =18 $ / unit

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