Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:Depreciation on sales office$ 9,900Depreciation on factory equipment16,00050,400Factory supervisor salarySales commissions23,9003,300Lubricants used in factory equipmentInsurance costs for factory21,600115,70010,700Wages paid to maintenance workersFabric used to upholster furnitureFreight-in (on raw materials)Costs of delivery to customersWages paid to assembly-line workersLumber used to build product3,3009,400115,40082,70054,80026,100Utilities in factoryUtilities in sales officeConversion costs for Custom Creations Furniture Company totaled>

Conversion costs is the amount of costs of production which is required for the purpose of converting the raw materials to the finished goods. This concept is used to determine the ending inventory value.The calculation of conversion costs is as follows: The formula snip is as follows:

Business

Accounting

Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office Depreciation on factory equipment Factory supervisor salary Sales commissions $ 9,900 16,000 50,400 23,900 3,300 21,600 115,700 10,700 3,300 9,400 Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers Wages paid to assembly-line workers Lumber used to build product Utilities in factory Utilities in sales office Conversion costs for Custom Creations Furniture Company totaled> 115,400 82,700 54,800 26,100

Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office Depreciation on factory equipment Factory supervisor salary Sales commissions $ 9,900 16,000 50,400 23,900 3,300 21,600 115,700 10,700 3,300 9,400 Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers Wages paid to assembly-line workers Lumber used to build product Utilities in factory Utilities in sales office Conversion costs for Custom Creations Furniture Company totaled> 115,400 82,700 54,800 26,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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