please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirectexpenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.Departmental Income StatementsFor Year Ended December 31SalesCost of goods soldGross profitExpensesAdvertisingDepreciation-EquipmentSalariesSupplies usedRentUtilitiesTotal expensesIncome (loss)AcousticElectric$ 101,800$ 83,30045,57546,75056,22536,5504,9854,32010,1108,58019,70017,7001,9301,7907,0955,9702,9452,60046,76540,960$ 9,460 $ (4,410)1. Prepare a departmental contribution to overhead report.2. Based on contribution to overhead, should the electric guitar department be eliminated?Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a departmental contribution to overhead report.Departmental Contribution to OverheadFor Year Ended December 31AcousticElectricCombinedGross profitDirect expensesTotal direct expenses000Departmental contribution to overhead$0 $0 $0Required 1Required 2 >

AcousticElectricCombined1Departmental Contribution to Overhead$24,485$8,480$32,965 2The electric…

Answered: Below are departmental income…

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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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering ellminsting its Electric Guitar department because it shows a loss. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Departmental Income Statements Required 1 Required 2 Acoustic $ 183,300 44,875 58,425 For Year Ended December 31 Direct expenses 4,995 10,000 19,00 1,948 7,895 3,835 46,945 $ 11,488 Total direct expenses Departmental contribution to overhead Electric 1. Prepares departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Acousto $ 83,400…
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARSDepartmental Income StatementsFor Year Ended December 31, 2019 Acoustic Electric Sales $ 102,600 $ 84,200 Cost of goods sold 45,375 47,650 Gross profit 57,225 36,550 Operating expenses Advertising expense 5,055 4,280 Depreciation expense—Equipment 10,110 8,500 Salaries expense 19,500 17,800 Supplies expense 1,940 1,760 Rent expense 7,065 6,030 Utilities expense 2,945 2,600 Total operating expenses 46,615 40,970 Net income (loss) $ 10,610 $ (4,420 ) 1. Prepare a departmental contribution report that shows each department’s contribution to overhead.2. Based on contribution…
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 436,000 $ 290,000 $ 726,000 Cost of goods sold 262,000 207,000 469,000 Gross profit 174,000 83,000 257,000 Operating expenses Direct expenses Advertising 17,000 12,000 29,000 Store supplies used 4,000 3,800 7,800 Depreciation—Store equipment 5,000 3,300 8,300 Total direct expenses 26,000 19,100 45,100 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 444,000 $ 281,000 $ 725,000 Cost of goods sold 261,000 210,000 471,000 Gross profit 183,000 71,000 254,000 Operating expenses Direct expenses Advertising 16,500 13,000 29,500 Store supplies used 5,500 4,900 10,400 Depreciation—Store equipment 4,200 2,800 7,000 Total direct expenses 26,200 20,700 46,900 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 444,000 $ 281,000 $ 725,000 Cost of goods sold 261,000 210,000 471,000 Gross profit 183,000 71,000 254,000 Operating expenses Direct expenses Advertising 16,500 13,000 29,500 Store supplies used 5,500 4,900 10,400 Depreciation—Store equipment 4,200 2,800 7,000 Total direct expenses 26,200 20,700 46,900 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. $24,324,000 2,975,000 12,600,000 10,550,000 2,875,000 3,445,000 Annual sales Net income Cost of goods sold Total assets Inventory Receivables The Midwest Outdoor Equipment Corporation has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer's plant and bills only the manufacturer when the manufacturer consumes the raw material. This is expected to reduce total assets by $2 million. What is the expected change in return on assets? Note: Round your answer to 2 decimal places. Expected change in return on assets %
Current Attempt in Progress Midlands Inc, had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77.000 units of product net sales $1.540,000: total costs and expenses $1.794.800; and net loss $254,800. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses 1 2. Total 3. $1.112.800 529,000 Variable $618,000 92,000 153,000 60,000 $1,794,800 $770,000 Fixed $494,800 437,000 92.000 Management is considering the following independent alternatives for 2020, Increase unit selling price 25% with no change in costs and experises. Change the compensation of salespersons from foed annual salaries totaling $201,000 to total salaries of $36,015 plus a 5% commission on net sales $1,024,800 Purchase new high-tech factory machinery that will change the proportion between variable and foxed cost of goods sold to 50:50. (a) Compute the break-even point in…
Sales Revenue Cost of Goods Sold Administrative Expenses Loss on Disposal of Equipment Sales Commission Expense Interest Income Loss from Flood Damage Loss from Discontinued Operations Credit Losses Totals Debit $15900. $10500. $16240. $23200. $72400 27300 11100 9800 15900 23200 6300 $166000 Credit $172400 8600 $181000 Blue uses the perpetual system, and their income tax rate is 30%. On Blue's multiple-step income statement for 2023, net income is
Required information [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) Income results for the year. Department P $ 66,000 Sales Expenses Avoidable Unavoidable Total expenses Income (loss) Department Department M Department N Department O Department P Department T Department M Department N $ 85,000 $ 45,000 Decision 17,800 58,200 76,000 $ 9,000 46,000 22,200 68,200 $ (23,200) Department O $ 79,000 19,300 5,800 25,100 $ 53,900 a. If the company plans to eliminate departments that have sales less than avoidable costs. 22,000 53,900 75,900 $ (9,900) Department T $ 39,000 52,200 21,000 73,200 $ (34,200) Total $ 314,000 157,300 161,100 318,400 $ (4,400) department(s) would be eliminated?
Assume the following information for Fruitful Proprietary Limited. for the year ended December 31, 2011: Sales R5,160 Cost of goods manufactured for the year R1,800 Beginning finished goods inventory R834 Ending finished goods inventory R593 Selling and administrative expenses R424 What is the cost of goods sold for the year ended 31 December 2011?
Complete this question by entering your answers in the tabs below. Required A Assume that only one product is being sold in each of the four following case situations: (Loss amounts should be indicated by a minus sign.) Case 1 Case 2 Case 3 Case 4 Units sold 8,700 19,200 5,100 Sales $261,000 $300,000 $173,400 Variable expenses 174,000 211,200 Fixed expenses 91,000 174,000 75,000 Net operating income (loss) $6,000 $145,400 $1,500 Contribution margin per unit $12 $12
A summary of HM Co's recent statement of profit or loss is given below: $'000 Revenue 10,123 Cost of sales (7,222) Gross profit 2,901 Expenses (999) Profit before interest and tax 1,902 Interest (1,000) Tax (271) Profit after interest and tax 631 70% of cost of sales and 10% of expenses are variable costs. What is HM Co's operational gearing?

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