FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The AAA Branch of SSS Company provided the following information related to its operations
for the last quarter of 2020:
The store sold 15,000 units at P78.00 each, after having purchased the units from
various suppliers for P45.15. AAA Branch's salespeople are paid a 5% commission based on
gross sales pesos.
AAA sales manager oversees the placement of local advertising contracts, which totaled
P154,000 for the year. Local property taxes amounted to P18,600.
The sales manager's P25,000 monthly salary is set by AAA's store manager. In contrast,
the store manager's
P50,000 monthly salary is determined by SSS Company's vice president.
AAA incurred last quarter an P16,800 of other noncontrollable costs along with P10,000
of income tax expense.
!
Nontraceable (common) company overhead totaled P58,000 during the period.
sss Company's corporate headquarter is located in New York and the company uses
responsibility accounting to evaluate performance.
Required:
Prepare a segmented income statement for the Motunui Branch, being sure to disclose the
segment contribution margin, the segment profit margin, and net income.
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