Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:Depreciation on sales office $ 9 comma 6009,600Depreciation on factory equipment16 comma 80016,800Factory supervisor salary50 comma 70050,700Sales commissions23 comma 00023,000Lubricants used in factory equipment3 comma 9003,900Insurance costs for factory21 comma 10021,100Wages paid to factory maintenance workers115,300Fabric used to upholster furniture10,500Freightminus-in (on raw materials) 3,800Costs of delivery to customers9,200Wages paid to assemblyminus-line workers115,700Lumber used to build product82,500Utilities in factory54,800Utilities in sales office26,000Prime costs for Country Furniture Company totaled

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Blaise

Business

17 July, 21:03

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:Depreciation on sales office $ 9 comma 6009,600Depreciation on factory equipment16 comma 80016,800Factory supervisor salary50 comma 70050,700Sales commissions23 comma 00023,000Lubricants used in factory equipment3 comma 9003,900Insurance costs for factory21 comma 10021,100Wages paid to factory maintenance workers115,300Fabric used to upholster furniture10,500Freightminus-in (on raw materials) 3,800Costs of delivery to customers9,200Wages paid to assemblyminus-line workers115,700Lumber used to build product82,500Utilities in factory54,800Utilities in sales office26,000Prime costs for Country Furniture Company totaled

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Answers (1)

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Phillip Blair · Answer 1

Prime costs = $212,500

Explanation:

Prime costs are the direct materials used and direct labor.

Prime costs = direct material + direct labor

Giving the following information:

Direct material:

Fabric used to upholster furniture10,500

Freightminus-in 3,800

Lumber used to build product 82,500

Total direct materials = $96800

Direct labor:

Wages paid to assembly-line workers 115,700

Prime costs = 96800 + 115700 = $212,500