WAEC Accounting 2018 Paper

Concept:Prime cost is the sum of all direct costs — mainly direct materials and direct labour — incurred in manufacturing a product.Explanation:Prime cost does not include factory overheads, administration expenses, or selling costs.From the given information, direct materials cost $= \mathrm{N}\,64,000$.Direct labour cost $= \mathrm{N}\,30,000$.Apply the formula:Prime cost $=$ Direct materials cost $+$ Direct labour cost.Prime cost $= \mathrm{N}\,64,000 + \mathrm{N}\,30,000$.Prime cost $= \mathrm{N}\,94,000$.Hence, the correct option is B.Answer:$\mathrm{N}\,94,000$ (Option B).