FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Prepare an income statement through gross profit for Bellingham Company for the month ending
March 31 using the variance data from Brief Exercises 1, 2, 3, and 4. Assume Bellingham sold
15,000 units at $172 per unit.
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- The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck CompanyProduct-Line Income StatementFor the Month Ended October 31 Hats Gloves Mufflers Sales $64,400 $89,400 $26,000 Cost of goods sold (26,400) (32,000) (15,100) Gross profit $38,000 $57,400 $10,900 Selling and administrative expenses (30,200) (34,200) (15,200) Operating income (loss) $7,800 $23,200 $(4,300) Fixed costs are 15% of the cost of goods sold and 35% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.arrow_forwardPlease Complete the last subpartarrow_forwardMechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $160,000, its total variable expenses were $78,600, and its total fixed expenses were $55,500. Required: a. Construct the company's contribution format income statement for April. b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. Complete this question by entering your answers in the tabs below. Required a Required b Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) 0 0arrow_forward
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- Cavy Company completed 10,510 units during the year at a cost of $746,210. The beginning finished goods inventory was 2,310 units valued at $152,460. Assuming a FIFO cost flow, determine the cost of goods sold for 9,490 units. $4arrow_forwardThe condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck CompanyProduct-Line Income StatementFor the Month Ended October 31 Hats Gloves Mufflers Sales $65,800 88,500 $27,600 Cost of goods sold (25,800) (32,100) (13,800) Gross profit $40,000 56,400 $13,800 Selling and administrative expenses (29,000) (34,500) (14,500) Operating income (loss) $11,000 $21,900 $(700) Fixed costs are 12% of the cost of goods sold and 36% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.arrow_forwardPresented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.arrow_forward
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