Dollar amount of prime costs


The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of prime costs.

A. $1,023,000

B. $550,000

C. $488,000

D. $235,000

E. $238,000

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Accounting Basics: Dollar amount of prime costs
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