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Gliss Inc. is a small distributor of mechanical pencils. Gliss identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) For 2019, Gliss buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $11 per pack. Assume Gliss has no fixed costs and no inventories. Calculate Gliss's operating income for 2019. Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Data table Activity Total 1. Placing and paying for orders of pencil packs - Quantity of Cost per Unit of Cost Cost Driver Cost Driver Number of orders Driver 700 $100 per order 5,000 $60 per load 2. Receiving and storage 3. Shipping of pencil packs to retailers Loads moved Number of shipments 1,500 $80 per shipment

Gliss Inc. is a small distributor of mechanical pencils. Gliss identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) For 2019, Gliss buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $11 per pack. Assume Gliss has no fixed costs and no inventories. Calculate Gliss's operating income for 2019. Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Data table Activity Total 1. Placing and paying for orders of pencil packs - Quantity of Cost per Unit of Cost Cost Driver Cost Driver Number of orders Driver 700 $100 per order 5,000 $60 per load 2. Receiving and storage 3. Shipping of pencil packs to retailers Loads moved Number of shipments 1,500 $80 per shipment

FINANCIAL ACCOUNTING
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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Please calculate the operating income then calculate the per unit amounts in the chart.
Gliss Inc. is a small distributor of mechanical pencils. Gliss identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) For 2019, Gliss buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $11 per pack. Assume Gliss has no fixed costs and no inventories. Calculate Gliss's operating income for 2019. Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Data table Activity Total 1. Placing and paying for orders of pencil packs - Quantity of Cost per Unit of Cost Cost Driver Cost Driver Number of orders Driver 700 $100 per order 5,000 $60 per load 2. Receiving and storage 3. Shipping of pencil packs to retailers Loads moved Number of shipments 1,500 $80 per shipment
Transcribed Image Text:Gliss Inc. is a small distributor of mechanical pencils. Gliss identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) For 2019, Gliss buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $11 per pack. Assume Gliss has no fixed costs and no inventories. Calculate Gliss's operating income for 2019. Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Revenues Costs: Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Data table Activity Total 1. Placing and paying for orders of pencil packs - Quantity of Cost per Unit of Cost Cost Driver Cost Driver Number of orders Driver 700 $100 per order 5,000 $60 per load 2. Receiving and storage 3. Shipping of pencil packs to retailers Loads moved Number of shipments 1,500 $80 per shipment
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