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Prime cost will be A-200000 B-400000 C-600000 D-800000
D->>>>>>>>>>>>800000
Prime costs = direct materials cost+ direct labor cost
Conversion cost=direct labor cost+manufacturing overheads
directlabor cost =300000$
totalproduction cost =direct labor cost+direct materials cost+manufacture overheaddirect
materials cost =500000$
Prime costs =300000+500000=800000 $
d)800,000
Material
Conversation Cost
.........................................
Prime Cost balancing fig (800,000)
Production overhead 100,000
-------------------------------
Total Production Cost 900,000
The answer is letter D.800,000.
answer800000 ------------------------------------------------------------
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