FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**Income Statement**

|                                  | Total Company | East      | West      |
|----------------------------------|---------------|-----------|-----------|
| **Sales**                        | $3,311,000    | $2,541,000 | $770,000  |
| **Variable expenses**            |               |           |           |
| **Contribution margin**          | $3,311,000    | $2,541,000 | $770,000  |
| **Traceable fixed expenses**     | $3,311,000    | $2,541,000 | $770,000  |
| **Region segment margin**        |               |           |           |
| **Common fixed expenses not traceable to regions** | |         |           |
| **Net operating income**         | $3,311,000    |           |           |

This income statement table provides a breakdown of financial performance across two regions, East and West, along with a total for the company. It details sales, contribution margin, traceable fixed expenses, and net operating income. The variable expenses and common fixed expenses not traceable to regions are not specified.
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Transcribed Image Text:**Income Statement** | | Total Company | East | West | |----------------------------------|---------------|-----------|-----------| | **Sales** | $3,311,000 | $2,541,000 | $770,000 | | **Variable expenses** | | | | | **Contribution margin** | $3,311,000 | $2,541,000 | $770,000 | | **Traceable fixed expenses** | $3,311,000 | $2,541,000 | $770,000 | | **Region segment margin** | | | | | **Common fixed expenses not traceable to regions** | | | | | **Net operating income** | $3,311,000 | | | This income statement table provides a breakdown of financial performance across two regions, East and West, along with a total for the company. It details sales, contribution margin, traceable fixed expenses, and net operating income. The variable expenses and common fixed expenses not traceable to regions are not specified.
**Diego Company Manufacturing Overview**

Diego Company produces a single product sold at $77 per unit across two regions: East and West. In the first operational year, 48,000 units were produced and 43,000 units were sold.

**Variable Costs per Unit:**
- **Manufacturing:**
  - Direct materials: $27
  - Direct labor: $12
  - Variable manufacturing overhead: $3
- Variable selling and administrative: $5

**Fixed Costs per Year:**
- Fixed manufacturing overhead: $864,000
- Fixed selling and administrative expense: $456,000

The sales distribution was 33,000 units in the East and 10,000 units in the West. The fixed selling and administrative expenses identified were $220,000 for the West and $170,000 for the East. The remaining $66,000 is a common fixed expense.

**Task:**
Create a contribution format segmented income statement with a Total column and separate columns for the East and West regions.
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Transcribed Image Text:**Diego Company Manufacturing Overview** Diego Company produces a single product sold at $77 per unit across two regions: East and West. In the first operational year, 48,000 units were produced and 43,000 units were sold. **Variable Costs per Unit:** - **Manufacturing:** - Direct materials: $27 - Direct labor: $12 - Variable manufacturing overhead: $3 - Variable selling and administrative: $5 **Fixed Costs per Year:** - Fixed manufacturing overhead: $864,000 - Fixed selling and administrative expense: $456,000 The sales distribution was 33,000 units in the East and 10,000 units in the West. The fixed selling and administrative expenses identified were $220,000 for the West and $170,000 for the East. The remaining $66,000 is a common fixed expense. **Task:** Create a contribution format segmented income statement with a Total column and separate columns for the East and West regions.
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