Whitman Company Income Statement Sales (35,000 units x $25 per unit)....... Cost of goods sold (35,000 units x $16 per unit). Gross margin ...... Selling and administrative expenses . $875,000 560,000 315,000 280,000 Net operating income... $ 35,000 The company's selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 unit product cost given above is computed as follows: Direct materials... Direct labor.... Variable manufacturing overhead Fixed manufacturing overhead ($160,000 ÷ 40,000 units).. $ 5 1 4 Absorption costing unit product cost... $16

Whitman Company Income Statement Sales (35,000 units x $25 per unit)....... Cost of goods sold (35,000 units x $16 per unit). Gross margin ...... Selling and administrative expenses . $875,000 560,000 315,000 280,000 Net operating income... $ 35,000 The company's selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 unit product cost given above is computed as follows: Direct materials... Direct labor.... Variable manufacturing overhead Fixed manufacturing overhead ($160,000 ÷ 40,000 units).. $ 5 1 4 Absorption costing unit product cost... $16

Name: Whitman Company has just completed its first year of operations. The c
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Description: Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows:Required:1. Redo the company’s income statement in the contribution format using variable costing.2. Reconcile any

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Sales (@ $25 per unit).... Cost of goods sold (@ $18 per unit). Gross margin..... $1,000,000 $1,250,000 720,000 900,000 280,000 350,000 Selling and administrative expenses" 210,000 Net operating income .. 230,000 S 70,000 $ 120,000 "S2 per unit variable; $130,000 fixed each year. page 294 The company's $18 unit product cost is computed as follows: Direct materials $ 4 Direct labor.. 7 Variable manufacturing overhead. 1 Fixed manufacturing overhead ($270,000 + 45,000 units). 6. Absorption costing unit product cost.... $18 Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced. 45,000 45,000 Units sold... 40,000 50,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3.…
what is the dollar sales to attain that target profit is closest to Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 150.00 $ 42.00 $421,200 He Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your i calculations to 2 decimal places.)
Cleary Company manufactures and sells a single product. The company's sales and expenses for last year follow: Total Per Unit % Sales. . . . . . . . . . . . . . . . . . . $100,000 $20 ? Variable expenses. . . . . . . ? ? ? Contribution margin. . . . . . ? ? ? Fixed expenses. . . . . . . . . . 12,000 Operating income. . . . . . . . $28,000 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? b. What is the total variable expense? c. How many units were sold? d. What is the per-unit variable expense? e. What is the per-unit contribution margin? 2. Answer the following questions about breakeven analysis: a. What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and…
COMPUTATIONS: Given the following data for SUPERCALIFRAGILISTICEXPIALIDOCIOUS COMPANY for the year ended December 31, 200X: Cost of sales Distribution costs Administrative expenses PhP 5,400,000 1,350,000 1,000,000 200,000 Other income Php 1,400,000 320,000 9,000,000 50,000 Other expenses Net sales Finance costs Prepaid expenses Tax rate is at 30% 11..Gross income а. 3,600,000 b. 5,000,000 с. 2,130,000 d. 1,491,000 12. Total income а. 3,600,000 b. 5,000,000 с. 2,130,000 d. 1,491,000 13. Total expenses a. 1,320,000 b. 2,350,000 c. 2,870,000 d. 2,670,000 14. Income before tax a. 3,600,000 b. 1,491,000 c. 7,530,000 d. 2,130,000
Data concerning Celenza Corporation's single product appear below: selling price per unit- $230 Variable expense per unit- 59.80 fixed expense per month- 697,820 Assume the company's monthly target profit is $18,000. The dollar sales to attain that target profit are closest to: Select one: a. $967,324 b. $1,478,766 c. $715,820 d. $2,753,154
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Clifford Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,327,040 Variable Cost of Goods Sold. . . . . . . . . . . . . $93,280 Variable Operating Expenses. . . . . . . . . . . . $133,760 Direct Fixed Manufacturing Overhead. . . . . $94,600 Direct Fixed Operating Expenses. . . . . . . . . $15,150 Common Fixed Expenses. . . . . . . . . . . . . . . $16,640 Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): Budgeted sales in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,800 Budgeted average selling price per unit. . . . . . . . . . . . . . . . . . . . . . $130 Variable Cost of Goods Sold per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . $10…
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per UnitSales. . . . . . . . . . . . . . . . . . . . . . . . $450,000 $30Variable expenses . . . . . . . . . . . . . 180,000 12Contribution margin . . . . . . . . . . . . 270,000 $18Fixed expenses. . . . . . . . . . . . . . . . 216,000Net operating income . . . . . . . . . . . $ 54,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to earn a target profi t of $90,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level.4. Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms. 5. What is the company’s CM ratio? If sales increase by $50,000 per month and there is no change in fi…
Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,532,857 $429,200 $596,111 $ 150.00 $ 42.00 $ 421,200 $852,723
During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1 $ 900,000 555,000 345,000 294,000 $ 51,000 Sales (@$60 per unit) Cost of goods sold (@ $37 per unit) Gross margin Selling and administrative expenses* Net operating income * $3 per unit variable; $249,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($360,000+ 20,000 units) Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Required 1 Year 1 20,000 15,000 Complete this question by entering your answers in the tabs below. Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income…
Assume Juniper Natural Dyes made Net Sales Revenue of $90,000 and Cost of Goods Sold totaled $58,000. What was Juniper Natural Dyes’s gross profit percentage for this period? (Round your answer to the nearest whole percent.) a. 36% b. 3.4 times c. 64% d. 17%
Frymire Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $240.00 Variable expense per unit $79.20 Fixed expense per month $1,019,472 Assume the company's monthly target profit is $46,000. The dollar sales to attain that target profit is closest to: a. $3,228,703 b. $1,961,477 c. $1,590,257 d. $1,065,472