alleryStart learning →Prime cost is Rs 1,20,000 and factory overhead Rs 40,000, with no work-in-progress. What is the factory cost?
ARs 1,20,000
BRs 80,000
CRs 1,40,000
DRs 1,60,000
Answer & Solution
Correct answer: D. Rs 1,60,000
Factory cost is prime cost plus factory overhead: 1,20,000 + 40,000 = Rs 1,60,000.
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