Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.

Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 22BEA: Inventory Valuation under Variable Costing Refer to the data for Judson Company above. Required: 1....

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Inventory Valuation under Variable Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
Inventory Valuation under Variable Costing Refer to the data for Pelham Company on the previous page. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of ending inventory under variable costing? Use the following information for Brief Exercises 3-30 and 3-31: During the most recent year, Pelham Company had the following data associated with the product it makes:
2)Fanelli Corporation, a merchandising company, reported the following resultsfor July:Number of units sold 5400Selling price per unit $ 590Unit cost of goods sold $ 406Variable selling expense per unit $ 58Total fixed selling expense $ 124,900Variable administrative expense per unit $ 28Total fixed administrative expense $ 206,800Cost of goods sold is a variable cost in this company.Required:a. Prepare a traditional format income statement for July.Fanelli CorporationFor the month of JulyTraditional Income Statement993,600Selling and administrative expenses:671,200$322,400b. Prepare a contribution format income statement for July.Fanelli CorporationFor the month of JulyContribution Format Income Statement2) 2Variable expenses:2,656,800529,200Fixed expenses:331,700$197,500 Please Provide Full Question Answer
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 6,400 Selling price per unit $| 600 Unit cost of goods sold $ 416 Variable selling expense per unit $ | 56 Total fixed selling expense $ 125,900 Variable administrative expense per unit | $| 24 Total fixed administrative expense $| 207,800 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.
Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice O $60,770 $64,170 What is the total estimated selling and administrative expense if the company sells 4,940 units? $59,370 May 4,800 $ 168,000 86,400 81,600 $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250
Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: May June July Sales in units 4,800 5,000 5,500 Sales $ 168,000 $ 175,000 $ 192,500 Cost of goods sold 86,400 90,000 99,000 Gross margin 81,600 85,000 93,500 Selling and administrative expenses: Advertising 17,000 17,000 17,000 Shipping 16,800 17,500 19,250 Salaries and commissions 29,600 30,000 31,000 Total selling and administrative expenses 63,400 64,500 67,250 Net operating income $ 18,200 $ 20,500 $ 26,250 What is the total estimated selling and administrative expense if the company sells 5,000 units? Garrison 17e Rechecks 2021-10-08
Cost of Goods Sold As an accountant for Lee Company, your supervisor gave you the following calculations of the gross profit for the first quarter: Alternative Sales ($50 per unit) Cost of Goods Sold Gross Profit A $500,000 $200,000 $300,000 B 500,000 228,000 272,000 C 500,000 213,333 286,667 The three alternative cost flow assumptions are FIFO, average, and LIFO (the alternatives are not necessarily presented in this sequence). Lee uses the periodic inventory system. The computation of the cost of goods sold under each alternative is based on the following data: Units Cost/Unit Inventory, January 1 12,000 $20 Purchase, January 10 4,000 21 Purchase, February 15 6,000 22 Purchase, March 10 8,000 23 1. Prepare schedules proving the cost of goods sold shown here under each of the three alternatives. For average cost. LEE COMPANY Schedules of Cost of Goods Sold For First Quarter Ended March 31 FIFO LIFO Average Beginning…
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold Selling price per unit Unit cost of goods sold 5,400 $ 590 $ 406 Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional format income statement for July. Fanelli Corporation For the month of July Traditional Income Statement Selling and administrative expenses: $ 58 $ 124,900 $ 28 $ 206,800
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income Req 1 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? Req 2 Complete this question by entering your answers in the tabs below. $ 240,000 $ 16,000 $ 160,000 $ 8,000 ? $ 9,600 12,000 ? 48,000 $ 14,400 Req 3 to 5 3. Calculate the selling price per unit. 4. Calculate the variable cost…
Number of units sold. Selling price per unit Unit cost of goods sold Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July. Complete this question by entering your answers in the tabs below. 6,400 $ 600 $416 $ 56 $ 125,900 $ 24 $ 207,800