Answer: $93,000
Explanation:
Flare Co. manufactures textiles. As such the direct labour should be those directly involved in the Manufacturing of these textiles and all others will be considered Indirect Labour.
Looming refers to the weaving of fabric meaning therefore that it is directly related to the Manufacturing of textiles.
Factory Foremen only supervise the activities of the factory and so are not directly involved and Machine Mechanics ensure that machines are running smoothly and so are not directly involved either.
Indirect labor for 2016 is therefore,
= Factory Foremen + Machine Mechanics
= 54,000+ 39,000
= $93,000
Answer:
At the time of purchase of raw material inventory,
Raw material inventory account will debit and accounts payable account will credit.
Therefore, the Journal entry for this transaction is as follows:
Raw Materials Inventory Account Dr. $36,000
To Accounts Payable $36,000
(To record the purchase of raw material on account)
Workings:
Raw material Inventory = Units of raw material purchased × Price per unit
= 6,000 × $6
= $36,000
Answer:4
Explanation:The total in 4 months would equal 360
Answer: Focused cost leadership
Explanation:
Focused cost leadership could be described as targeting your market to a category of people only and not necessarily everyone. Some businesses do have a target market in mind when carrying out their production or sales. Their product isn't for everyone but this particular persons. They could design it from a normal general product but they will make it look perculiar and specific for this targeted market.
Answer:
Correct statements are:
B, C and D
Explanation:
A firm with positive net income can anytime run out of cash as the accounting net income is computed on accrual basis, and it is not necessary that all the related cash is collected.
Also the firm might spend a huge amount on investing in small companies, capital properties etc: which will again lead to huge cash outflow.
Financing activities generally bring the cash in the company, whereas after the financing instruments are matured, they need to be paid off. In that case, in year of maturity the entire amount will be paid which will involve huge cash outflow, and the company might run out of cash.
Therefore, all the statements except Statement A are correct.
Correct Statement are:
B, C and D
