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?

A$352,000

B$344,000

C$389,000

D$397,000

Show Suggested Answer

Suggested Answer: A

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

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Alverta

2 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

2 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

1 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

1 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

1 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

2 months ago

Hmm, I see your point. Let's double check our calculations before the exam.

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Tatum

2 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

1 months ago

User3: I agree with User1, B) $344,000 seems right.

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Jeanice

1 months ago

I'm leaning towards A) $352,000.

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Melinda

2 months ago

I think it's B) $344,000.

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Skye

2 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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