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Question - Richardson & Sons purchased direct material worth $15 000 during the most recent period. At the end of the period the direct material account balance was $6 000 larger than the beginning balance. Cost of goods sold was $150 000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are:
Beginning
Ending
Work in process
$75,000
$20,000
Finished goods
$110,000
$60,000
Required - What is the amount of prime cost added to production for the period?
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