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CIMA Exam CIMAPRA17-BA3-1 Topic 2 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam
Question #: 99
Topic #: 2
[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?

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Suggested Answer: A

by Chauncey at Sep 13, 2024, 07:32 AM

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Alverta
4 months ago
I'm definitely going with B) $344,000. It's the only answer that matches the raw material and direct labor costs given in the information. Whoever wrote this question must have been trying to trick us!
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Merri
4 months ago
I almost went with B, but then I remembered that prime cost includes indirect labor too. So I'm going to have to say D) $397,000 is the right answer. Gotta love these trick questions!
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Marsha
4 months ago
It's always important to carefully consider all the elements that make up prime cost. D) $397,000 definitely seems like the most accurate option here.
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Gilberto
4 months ago
I was also leaning towards B at first, but after considering all the components of prime cost, I think D) $397,000 is the right choice.
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Isadora
4 months ago
I agree with you, prime cost includes direct materials and direct labor, as well as indirect labor. So D) $397,000 seems like the correct answer.
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Dorinda
5 months ago
Hmm, I see your point. Let's double check our calculations before the exam.
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Tatum
5 months ago
Hmm, this one's tricky. I'm going to go with C) $389,000, but I'm not totally sure. Maybe I should have paid more attention in class.
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Herminia
4 months ago
User3: I agree with User1, B) $344,000 seems right.
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Jeanice
4 months ago
I'm leaning towards A) $352,000.
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Melinda
4 months ago
I think it's B) $344,000.
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Skye
5 months ago
D) $397,000 looks like the correct answer to me. The question asks for the prime cost, which includes raw material and direct labor, and the total of those two figures is $397,000.
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Tawna
4 months ago
D) $397,000 is the correct prime cost for UVW.
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Roxanne
4 months ago
C) $389,000 is not the prime cost for UVW.
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Curt
4 months ago
B) $344,000 is also lower than the correct answer.
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Zana
4 months ago
A) $352,000 is too low for the prime cost.
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Linette
5 months ago
I calculated it differently, I believe it is $344,000.
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Josephine
5 months ago
I think the answer is B) $344,000. The total raw material cost is $289,000, and the total direct labor cost is $55,000, which adds up to $344,000.
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Catalina
4 months ago
I'm not sure, but I think we need to consider all direct costs to calculate the prime cost accurately.
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Leonora
4 months ago
Actually, I believe the answer is D) $397,000 because the prime cost includes all direct costs related to production.
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Lashaunda
4 months ago
I think the answer might be C) $389,000 because we also need to consider the factory overhead costs.
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Lawrence
4 months ago
I agree with you, the prime cost is calculated by adding raw material cost and direct labor cost.
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Dorinda
5 months ago
I think the prime cost is $352,000.
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