Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin White 48% Required 1 Required 2 $ 292,800 87,840 $ 204,960 Percentage of total sales 100% 30% 70% Complete this question by entering your answers in the tabs below. White % Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Product Fragrant 20% $ 122,000 97,600 $ 24,400 % Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product Fragrant % 100% 80% 20% Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses/CM ratio= $229,320/0.52= $441,000 As shown by these data, net operating income is budgeted at $87,880 for the month and the estimated break-even sales is $441,000. Assume that actual sales for the month total $610,000 as planned, however, actual sales by product are: White, $195,200, Fragrant, $244,000; and Loonzain, $170,800. % Loonzain % Loonzain 32% $ 195,200 107,360 $ 87,840 % 100% 55% 45% Total % Total 100% $ 610,000 292,800 $ 317,200 229,320 $ 87,880 % 100% 48% 52%
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin White 48% Required 1 Required 2 $ 292,800 87,840 $ 204,960 Percentage of total sales 100% 30% 70% Complete this question by entering your answers in the tabs below. White % Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Product Fragrant 20% $ 122,000 97,600 $ 24,400 % Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Limited Contribution Income Statement Product Fragrant % 100% 80% 20% Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses/CM ratio= $229,320/0.52= $441,000 As shown by these data, net operating income is budgeted at $87,880 for the month and the estimated break-even sales is $441,000. Assume that actual sales for the month total $610,000 as planned, however, actual sales by product are: White, $195,200, Fragrant, $244,000; and Loonzain, $170,800. % Loonzain % Loonzain 32% $ 195,200 107,360 $ 87,840 % 100% 55% 45% Total % Total 100% $ 610,000 292,800 $ 317,200 229,320 $ 87,880 % 100% 48% 52%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and
Loonzain. Budgeted sales by product and in total for the coming month are shown below:
Percentage of total sales
Sales
Variable expenses
Contribution margin
White
48%
Required 1 Required 2
$ 292,800
87,840
$ 204,960
Percentage of total sales
100%
30%
70%
Complete this question by entering your answers in the tabs below.
White
Required:
1. Prepare a contribution format income statement for the month based on the actual sales data.
2. Compute the break-even point in dollar sales for the month based on your actual data.
Product
Fragrant
20%
$ 122,000
97,600
$ 24,400
Prepare a contribution format income statement for the month based on the actual sales data.
%
Fixed expenses
Net operating income
Dollar sales to break-even = Fixed expenses/CM ratio = $229,320/0.52 = $441,000
As shown by these data, net operating income is budgeted at $87,880 for the month and the estimated break-even sales is $441,000.
Assume that actual sales for the month total $610,000 as planned, however, actual sales by product are: White, $195,200; Fragrant,
$244,000, and Loonzain, $170,800.
100%
80%
20%
Gold Star Rice, Limited
Contribution Income Statement
Product
Fragrant
%
%
Loonzain
%
Loonzain
32%
$ 195,200
107,360
$ 87,840
%
100%
55%
45%
Total
%
Total
100%
$ 610,000
292,800
$317,200
229,320
$ 87,880
%
100%
48%
52%
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