CIMAPRA17-BA3-1 Exam - Topic 1 Question 76 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 76
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

UVW is preparing its manufacturing account for the year ended 30 June 20X7 The following information is available:

What is UVWs prime cost for year ended 30 June 20X7?

A$352,000

B$344,000

C$389,000

D$397,000

Show Suggested Answer

Suggested Answer: A

by Leonida at Oct 19, 2023, 03:41 PM

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Ryann

8 months ago

I’m not so sure about B either, feels a bit low.

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Selene

8 months ago

Totally with you, Trinidad! A makes the most sense.

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Izetta

8 months ago

Wait, how did they get those numbers? Seems off.

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Trinidad

8 months ago

I think it’s definitely A, $352,000.

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Joseph

9 months ago

Prime cost is usually direct materials plus direct labor.

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Kassandra

9 months ago

I feel uncertain about whether to include all manufacturing costs or just the variable ones for prime cost.

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Iluminada

9 months ago

I practiced a question like this last week, and I think the answer was around $344,000, but I need to double-check my calculations.

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Nydia

9 months ago

I remember a similar question where we had to sum up direct costs, but I can't recall if overheads were included in prime cost.

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Sylvie

9 months ago

I think prime cost includes direct materials and direct labor, but I'm not sure how to calculate it with the figures given.

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Tracey

9 months ago

I'm feeling confident about this one. The information is all there, I just need to plug the numbers into the prime cost formula. I'll review my work, but I think I've got the right answer.

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Lisbeth

9 months ago

This seems pretty simple, but I want to double-check my work. Let me walk through the calculations step-by-step to make sure I don't miss anything.

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Vallie

9 months ago

Okay, I think I've got this. Prime cost is the sum of direct materials, direct labor, and direct expenses. I just need to add up the relevant figures from the information provided.

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Myra

9 months ago

Hmm, I'm a bit unsure about how to handle the opening and closing inventories of raw materials and work in progress. I'll need to review the definitions of prime cost carefully.

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Kanisha

9 months ago

This looks like a straightforward manufacturing cost calculation. I'll start by identifying the key components of prime cost and then add them up.

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Dallas

10 months ago

I remember learning about this in class, but I can't quite recall the specifics. I'll have to eliminate the options that don't seem right and make an educated guess.

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