Question 5 From the following information work out: (a) Prime cost (b) Production cost (c) Total cost Wages and salaries of employees: In factory (60 percent is directly concerned with units being manufactured) 150,000 In salesforce 15,000 In administration 26,000 Carriage costs: On raw materials brought into the firm 1,800 On finished goods delivered to customers 1,100 Rent and rates: Of factory block 4,900 Of sales department and showrooms 1,000 Of administration block 1,100 7,000 Travelling expenses: Sales staff 3,400 Administrative staff 300 Factory workers not concerned directly with production 200 3,900 Raw materials: Stock at start of period 11,400 Bought in the period 209,000 Stock at close of the period 15,600 Royalties: payable per unit of production (assume one unit is being produced) 400 Depreciation: Sales staff cars 500 Vehicles used for deliveries to customers 300 Cars of administrative staff 400 Machinery in factory 1,800 Office machinery 200 3,200 Interest costs on borrowed money 800 Other factory indirect expenses 6,000 Other administrative expenses 4,000 Other selling expenses 1,000