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zepelin [54]
2 years ago
11

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year inc

lude:
Wages paid to factory maintenance workers: $60,700
Fabric used to upholster furniture: $80,200
Wages paid to assembly - line workers: $100,300
Lumber used to build product: $15,300
Sales commissions: $7,400
Insurance costs for factory: $21,900
Freight-in (on raw materials): $3,500
Utilities in factory: $12,300
Factory supervisor salary: $60,100
Depreciation on factory equipment: $18,400
Utilities in sales office: $26,000
Costs of delivery to customers: $8,600
Depreciation on sales office: $1,400
Lubricants used in factory equipment: $400

Prime costs for Rustic Living Furniture Company totaled:

a. $195,800
b. $241,600
c. $199,300
d. $95,500
Business
1 answer:
Nostrana [21]2 years ago
3 0

Answer:

$195,800

Explanation:

prime cost are expenditures which can be charged directly to a particular unit. They can be easily identified with a particular unit of output. e.g Direct labour, direct expenses, direct materials

The prime cost in  for Rustic living furniture includes :

Fabric used to upholster furniture: $80,200

Wages paid to assembly - line workers: $100,300  

Lumber used to build product: $15,300

$80,200 + $100,300 + $15, 300 = $195,800

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7nadin3 [17]

Answer:

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300

Explanation:

currently Blue Ridge's costs are:

variable costs = $69,000

fixed costs = $69,000

total $138,000

total cost per unit = $138,000 / 45,000 units = $3.0667 per unit

if Blue Ridge decide to outsource the production of the parts:

variable costs = 45,000 x $4 = $180,000

decrease in fixed costs = $69,000 x -30% = -$20,700

total costs = $159,300

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300

7 0
3 years ago
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The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2009 balance sheet showed l
Svet_ta [14]

Answer:

net cash flow from creditors of $1.42 million

Explanation:

The movement in the long term debt account between 2008 and 2009 is as a result of the interest owed on the debt and the cash payment for the period.

Let the cash outflow to the creditor be H

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H = $2.25 million + 0.33 million - $4 million

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This means that the firm had a net cash flow from creditors of $1.42 million in 2019.

5 0
3 years ago
Larkspur, Inc. reports net income of $91,800 in 2022. However, ending inventory was understated $7,800. What is the correct net
dezoksy [38]

Answer:

$99,600

Explanation:

If the ending inventory was understated that means that they have less of the inventory than they had originally expected, this means that they sold more than they have calculated and therefore have not included the $7,800 in the net income. Therefore, we would need to add this amount to the actual reported net income to get the correct net income for 2022...

$91,800 + $7,800 = $99,600

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mina [271]

Answer: a. The patent is an intangible so it is amortized for cost recovery

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6 0
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Answer:

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