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OverLord2011 [107]
3 years ago
10

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 42,000

Company advertising 18,000 Wages paid to seamstresses 75,000 Depreciation on salespersons' vehicles 25,000 Thread 1,000 Utilities for factory 22,000 Cutting room supervisor's salary 30,000 President's salary 75,000 Premium quality cotton material 42,000 Buttons 750 Factory insurance 15,000 Depreciation on sewing machines 6,000 Wages paid to cutters 50,000 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White.
Business
1 answer:
Doss [256]3 years ago
8 0

Answer:

Results are below.

Explanation:

<u>1) Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.</u>

<u></u>

Direct material= Thread + Premium quality cotton material + Buttons

Direct material= 1,000 + 42,000 + 750

Direct material= $43,750

<u>2) Direct labor is production or service labor that is assigned to a specific product, cost center, or work order.  </u>

Direct labor= Wages paid to seamstresses  + Wages paid to cutters Direct labor= 75,000 + 50,000

Direct labor=  $125,000

<u>3) Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured</u><u>.</u>

Manufacturing overhead= Factory rent + Utilities for factory + Cutting room supervisor's salary + Factory insurance + Depreciation on sewing machines

Manufacturing overhead= 42,000 + 22,000 + 30,000 + 15,000 + 6,000

Manufacturing overhead= $115,000

4) Total manufacturing costs= 43,750 + 125,000 + 115,000

Total manufacturing costs= $283,750

5) Prime cost= direct material + direct labor

Prime cost= 43,750 + 125,000

Prime cost= $168,750

6) Conversion cost= direct labor + MOH

Conversion cost= 125,000 + 115,000

Conversion cost= $240,000

7) <u>Period costs are not directly tied to the production process</u>. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Period costs= Company advertising + Depreciation on salespersons' vehicles + President's salary

Period costs= 18,000 + 25,000 + 75,000

Period costs= $118,000

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pav-90 [236]

Answer:

D) $15,000.

Explanation:

190,000 excess of value Building  amortized over 10 years:   19,000

 70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

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the inventory as still is in the company's possesion will also need to be adjsuted

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Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,700, $10,700, and
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Answer:

Total PV= $26,176.63

Explanation:

Giving the following information:

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<u>To calculate the price of the investment now, we need to use the following formula on each cash flow:</u>

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the creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indisp
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<h3>What is manufacturing?</h3>

Manufacturing is the creation or manufacturing of items with the aid of resources such as machinery, labor, tools, and chemical or biological processing or formulation. It is the very foundation of the economy's secondary sector. The phrase can be used to characterize a range of human undertakings, from handicraft to high-tech, but it is most usually used in relation to industrial design, which entails the extensive transition of raw materials from the primary industry into finished goods. Such products may be delivered via the tertiary industry to end users and consumers, sold to other manufacturers for the creation of other, more sophisticated products (such as aircraft, home appliances, furniture, and sports equipment), or both (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).

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Answer:

d. a matter of establishing relationships.

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Selling involves creating a relationship with the prospect.

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Sales based on referrals are the easiest to obtain and give best value.

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