Variable costs: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed costs: Cost of goods sold Selling expenses Administrative expenses Operating income 454,060 81,760 67,160 419.20 153,300 52,560 33,580 $179,580
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- The following information is for Lawrence Company, who uses the LIFO method: Item Cost NRV MinusNormal Profit Net RealizableValue ReplacementCost a $3.40 $2.79 $4.14 $4.65 b 36.00 28.80 32.40 27.60 c 2.40 1.32 1.56 1.94 d 6.00 5.55 6.15 6.30 e 24.00 20.40 22.80 21.00 f 13.35 10.55 12.30 12.90 1. Determine the lower of cost or market for each inventory item. Item Lower ofCost or Market Value a $ b $ c $ d $ e $ f $ 2. Now assume instead that the company uses FIFO and the inventory is valued using the LCNRV rule, determine the value of each inventory item. Item Lower ofCost or Net Realizable Value a $ b $ c $ d $ e $ f $The following information is available for Bramble Corp.: Sales Cost of goods sold $520000 0 0 0 0 300000 Total fixed expenses A CVP income statement would report contribution gross profit of $220000. contribution gross profit of $260000. Total variable expenses margin of $260000. margin of $370000. $150000 260000You have the following information for Kingbird Diamonds. Kingbird Diamonds uses the periodic method of accounting for its inventory transactions. Kingbird only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 3 March 5 March 10 March 25 Beginning inventory 180 diamonds at a cost of €368 per diamond. Purchased 240 diamonds at a cost of €420 each. Sold 224 diamonds for €720 each. Purchased 420 diamonds at a cost of €464 each. Sold 480 diamonds for €780 each.
- Use this a pivot table to calcuate the number of total sales revenue, total profit and average profit margin for each product category: Product Category Sum of Quantity Sum of Equipment Cost Sum of Sale Amount Bar Equipment 510 11504.3726 31277.3 Commercial Appliances 730 143395.992 218123.25 Concession Equipment 352 155565.7424 240188.6 Fryers 1874 44151.6007 73716.1 Ovens and Ranges 605 491640.5884 645171.45 Refrigerators and Coolers 457 457926.0049 675414.5 Warmers 395 431708.5537 467847.3 Grand Total 4923 1735892.855 2351738.5Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Foxed expenses Operating income (loss) Contribution margin per unit $ Case #1 15,000 180,000 $ 100,000 120,000 50,000 $ $ Case #2 Case #1 Case #3 10,000 Case #2 70,000 $ 32,000 8,000 $ 12,000 $ 10 $ 13 Case #4 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) Case #3 6,000 300,000 100,000 (10,000) Case #4By using the information given below calculate the net income under the traditional costing method. Show your calculations. (No beginning finished goods inventory.) Variable cost of goods sold per unit Fixed cost of goods sold per unit Variable operating expenses per unit Fixed operating expenses per unit Selling price Number of units sold Number of units produced 18,000 20,000 $4.00 $ 3.00 $1.50 $1.25 $12.00
- 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.) Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific IdentificationIdentify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold. Explain your reasons Reason $ M Units Sold a. Total phone cost b. Materials cost per unit C. Manager's salary d. Depreciation cost per unit e. Total utility cost f. Total cost of goods sold 25 150 $ 35 3,000 60 400 3,125 50 200 $ 35 3,000 75 100V, F, or M 250 $ 300 35 35 3,000 3,000 2015 900 1,150 9,375 12,500 F 30 650 6,250 reasons 1. Does not change in total over wide ranges of volume/inversely proportional to the number of units produced while total cost remains constant. 2- It is directly proportional to the number of units produced. The total cost changes as volume changes and in direct proportion. 3-The total cost changes as volume changes, but not in direct proportion.the Sales Cost ( 390000)$ , Sales ( 990000)$ , Ind. Marketing ( f. ) ( 120000)$ Ind. Exp. ( f.) ( 150000)$. Ad. Cost ( 220000)$. Net profit ( using variable Cost ) ?
- The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income (a1) Blanc Company Noir Company $505,000 $505,000 303,000 252,500 252,500 242,400 $10,100 * Your answer is incorrect. Blanc Company 202,000 191,900 $10,100 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Noir Company Contribution Margin Ratio 40% 50%The following information is given for Gator Company, who uses the FIFO method. Item Quantity Cost NetRealizableValue ReplacementCost NRVMinusNormalProfit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 1 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 2 3 4 5 6 b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory.$_______The following information is given for Gator Company, who uses the FIFO method. Item Quantity Cost NetRealizableValue ReplacementCost NRVMinusNormalProfit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 1 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 $fill in the blank 1 2 $fill in the blank 2 3 $fill in the blank 3 4 $fill in the blank 4 5 $fill in the blank 5 6 $fill in the blank 6 b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory. $fill in the blank 7