Answered: How do we calculate factory cost? Prime…

How do we calculate factory cost? Prime cost + Opening WIP- Closing WIP+ Factory Overhead b. Total Cost - Profit c. Direct Material + Direct Labour + Direct Expense O d. Prime cost + office cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 16MC: Under variable costing, a unit of product includes which costs? direct material, direct labor, and...

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Question

How do we calculate factory cost?
a. Prime cost + Opening WIP- Closing
WIP+ Factory Overhead
b.
Total Cost - Profit
c. Direct Material + Direct Labour +
Direct Expense
O d. Prime cost + office cost

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