Pottery ranch inc. has been manufacturing its own finials for its curtain rods. the company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. the direct materials and direct labor cost per unit to make a pair of finials are $3.73 and $4.69, respectively. normal production is 33,300 curtain rods per year. a supplier offers to make a pair of finials at a price of $12.90 per unit. if pottery ranch accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $49,200 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. a. prepare an incremental analysis to decide if pottery ranch should buy the finials. (round answers to 0 decimal places, e. g. 1250. enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (. should pottery ranch buy the finials? c. would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $61,137?

Flounder supply company, a newly formed corporation, incurred the following expenditures related to land, to buildings, and to machinery and equipment. abstract company’s fee for title search $1,066 architect’s fees 6,499 cash paid for land and dilapidated building thereon 178,350 removal of old building $41,000 less: salvage 11,275 29,725 interest on short-term loans during construction 15,170 excavation before construction for basement 38,950 machinery purchased (subject to 2% cash discount, which was not taken) 112,750 freight on machinery purchased 2,747 storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,469 new building constructed (building construction took 6 months from date of purchase of land and old building) 994,250 assessment by city for drainage project 3,280 hauling charges for delivery of machinery from storage to new building 1,271 installation of machinery 4,100 trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,070 instructions determine the amounts that should be debited to land, to buildings,and to machinery and equipment. assume the benefits of capitalizing interest during constructionexceed the cost of implementation. indicate how any costs notdebited to these accounts should be recorded.