JAMB Accounts Principles of Accounts 2019 Paper

Concept:The total production/prime cost is found by adding all direct production costs: raw materials consumed, manufacturing wages, and direct expenses.Explanation:Cost of raw material consumed is the direct material cost.Manufacturing wages are the direct labour cost.Direct expenses are the other direct charges incurred in production.Therefore, total production cost $= \text{Cost of raw materials consumed} + \text{Manufacturing wages} + \text{Direct expenses}$.Using the given figures, the total production cost is $\text{₦}220,480$.Answer:Option A: $\text{₦}220,480$.