The year-end financial statement of Wando's Vineyards reported Net revenues of $19,425,412 and Cost of goods sold of $7,204,884 in year 2. Note 3 to the financial statements reported that Inventories consisted of: Winemaking and packaging materials Work-in-process Finished goods Total inventories Year 1 Year 2 $899,620 $759,321 7,297,415 6,664,571 4,970,687 4,271,816 $13,167,722 $11,695,708 The inventory turnover for Year 2 was: Select one: O O O O O a. 0.62 b. 0.58 c. 0.55 d. None of these are correct. e. 1.56

The year-end financial statement of Wando's Vineyards reported Net revenues of $19,425,412 and Cost of goods sold of $7,204,884 in year 2. Note 3 to the financial statements reported that Inventories consisted of: Winemaking and packaging materials Work-in-process Finished goods Total inventories Year 1 Year 2 $899,620 $759,321 7,297,415 6,664,571 4,970,687 4,271,816 $13,167,722 $11,695,708 The inventory turnover for Year 2 was: Select one: O O O O O a. 0.62 b. 0.58 c. 0.55 d. None of these are correct. e. 1.56

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

See similar textbooks

Similar questions

Note 3 to the 2013 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following: 2013 2012 Winemaking and packaging materials $ 732,909 $ 454,612 Work-in-process Finished goods 4,099,224 5,001,179 3,891,754 4,880,518 Total inventories $9,833,312 $9,226,884 The company reported cost of goods sold of $5,588,439 in 2013 and $5,253,336 in 2012. Compute average inventory days outstanding for both years. What does this ratio mean? Interpret the ratios.
The following Income statement was drawn from the records of Fanning Company, a merchandising firm: Sales revenue (7,000 units x $160) Cost of goods sold (7,000 units * $87) Gross margin Sales commissions (5% of sales) Administrative salaries expense Required For the Year Ended December 31, Year 1 Advertising expense Depreciation expense Shipping and handling expenses (7,000 units * $1) Net income FANNING COMPANY Income Statement Req A a. Reconstruct the Income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net Income Fanning will earn If sales Increase by 20 percent. Complete this question by entering your answers in the tabs below. Reg B and C FANNING COMPANY Income Statement For the Year Ended December 31, Year 1 Less: Variable costs Reconstruct the income statement using the contribution margin format. Less: Fixed costs $1,120,088 (609,000) 511,000 (56,000)…
The following Income statement was drawn from the records of Walton Company, a merchandising firm: sales revenue (7,500 units x $163) Cost of goods sold (7,500 units × $81) Gross margin Sales commissions (10% of sales) Administrative salaries expense Required Advertising expense Depreciation expense Shipping and handling expenses (7,500 units x $3) Net income For the Year Ended December 31, Year 1 WALTON COMPANY Income statement Req A a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net Income Walton will earn If sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Req B and C Less: Fixed costs Less: Variable costs Reconstruct the income statement using the contribution margin format. WALTON COMPANY Income Statement For the Year Ended December 31, Year 1 S $1,222,500 (607,500) 615,000 (122,250)…
The following income statement was drawn from the records of Adams Company, a merchandising firm: ADAMS COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (7,500 units x $167) Cost of goods sold (7,500 units x $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,500 units x $5) Net income Required $1,252,500 (615,000) 637,500 (62,625) (88,000) (40,000) (49,000) (37,500) $360,375 a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Adams will earn if sales increase by 20 per Complete this question by entering your answers in the tabs below. Req A Req B and C Reconstruct the income statement using the contribution margin format. ADAMS COMPANY Income Statement For the Year Ended December 31, Year 1
The following Income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (7,000 units × $165) Cost of goods sold (7,000 units x $87) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,000 units × $2) Net income Required Req A a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net Income Campbell will earn if sales Increase by 20 percent. Complete this question by entering your answers in the tabs below. Req B and C Less: Variable costs Less: Fixed costs Reconstruct the income statement using the contribution margin format. CAMPBELL COMPANY Income Statement For the Year Ended December 31, Year 1 $ $1,155,000 (609,000) 546,000 (115,500)…
The following income statement was drawn from the records of Munoz, a merchandising firm: MUNOZ COMPANY Income Statement For the Year Ended December 31 Sales revenue (6,500 units x $164) Cost of goods sold (6,500 units x $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $3) $1,066,000 (533,000) 533,000 (53,300) (83,000) (33,000) (41,000) (19,500) 8:02 Net income $303,200 nt Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net incoome Munoz will earn if sales increase by 10 percent. int Complete this question by entering your answers in the tabs below. Req A Req B and C Reconstruct the income statement using the contribution margin format. MUNOZ COMPANY Income Statement For the Year Ended December 31 Less: Variable costs…
The following income statement was drawn from the records of Munoz, a merchandising firm: MUNOZ COMPANY Income Statement For the Year Ended December 31 Sales revenue (6,500 units x $164) Cost of goods sold (6,500 units x $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $3) $1,066,000 (533,000) 533,000 (53,300) (83,000) (33,000) (41,000) (19,500) $ 303,200 Net income Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Munoz will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Req A Req B and C Reconstruct the income statement using the contribution margin format. MUNOZ COMPANY Income Statement For the Year Ended December 31 Less: Variable costs Less: Fixed…
The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $168) Cost of goods sold (5,500 units * $89) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units x $2) Net income Req A $924,000 (489,500) 434,500 (46,200) (80,000) (31,000) Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Walton will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Less: Variable costs (44,000) (11,000) $222,300 Req B and C Reconstruct the income statement using the contribution margin format. WALTON COMPANY Income Statement For the Year Ended…
The questions to be answered are:Week 1The following data refer to Nani’s Fashions for the current year:Sales Revenues $475,000Work in process inventory, 31 December 15,000Work in process inventory, 1 January 20,000Selling and administrative expenses 75,000Income tax expense 45,000Purchase of raw materials 90,000Raw materials inventory, 31 December 12,500Raw material inventory. 1 January 20,000Direct labour 100,000Electricity: plant 20,000Depreciation plant and equipment 30,000Finished goods inventory, 31 December 25,000Finished goods inventory, 1 January 10,000Indirect material 5,000Indirect labour 7,500Other manufacturing overhead 40,000Required:a) Prepare the schedule of cost of goods manufactured for Nani’s fashion. (3 marks)b) Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the informationprovided by the schedule of cost of goods sold. (4 marks)c) Prepare an income statement for the current year.
The condensed product-line income statement for Suffolk China Ware Company for the month of May is as follows: Suffolk China Ware CompanyProduct-Line Income StatementFor the Month Ended May 31 Bowls Plates Cups Sales $65,700 $90,200 $26,400 Cost of goods sold 25,900 32,000 14,800 Gross profit $39,800 $58,200 $11,600 Selling and administrative expenses 29,900 34,300 15,400 Income from operations $9,900 $23,900 $(3,800) Fixed costs are 14% of the cost of goods sold and 35% of the selling and administrative expenses. Suffolk China Ware assumes that fixed costs would not be materially affected if the Cups line were discontinued. a. Prepare a differential analysis dated May 31 to determine if Cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis…
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Aricanly Manufacturing Company for the month ending January 31: Cost of goods manufactured $292,550 Selling expenses 97,720 Administrative expenses 51,660 Sales 622,440 Finished goods inventory, January 1 70,340 Finished goods inventory, January 31 64,110 a. For the month ended January 31, determine Aricanly's cost of goods sold. Aricanly Manufacturing Company Cost of Goods Sold January 31
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $165,390 Selling expenses 55,250 Administrative expenses 29,210 Sales 351,890 Finished goods inventory, January 1 39,760 Finished goods inventory, January 31 36,240 a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 $ $ $ b. For the month ended January 31, determine Bandera Manufacturing’s gross profit. Bandera Manufacturing Company Gross Profit January 31 $ $ c. For the month ended January 31, determine Bandera Manufacturing’s net income. Bandera Manufacturing Company Net Income January 31 $ Operating expenses: $ Total operating expenses…