Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $28 per unit sold $185,000 per quarter 6% of sales Cost Formula $51,000 per quarter + $4.00 per unit sold $95,000 per quarter $10,500 per quarter $65,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.

Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $28 per unit sold $185,000 per quarter 6% of sales Cost Formula $51,000 per quarter + $4.00 per unit sold $95,000 per quarter $10,500 per quarter $65,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Prepare a contribution format income statement for the next quarter. Sales Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Cost of goods sold Sales commission Shipping expense Total variable expenses Contribution margin Fixed expenses: Total fixed expenses Prepare a traditional format income statement for the next quarter. Milden Company Traditional Format Income Statement For the Next Quarter Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Sales commission Shipping expense Administrative salaries Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 0 0 0
Transcribed Image Text:Prepare a contribution format income statement for the next quarter. Sales Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Cost of goods sold Sales commission Shipping expense Total variable expenses Contribution margin Fixed expenses: Total fixed expenses Prepare a traditional format income statement for the next quarter. Milden Company Traditional Format Income Statement For the Next Quarter Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Sales commission Shipping expense Administrative salaries Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 0 0 0
Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $28 per unit sold $185,000 per quarter 6% of sales Cost Formula $51,000 per quarter + $4.00 per unit sold $95,000 per quarter $10,500 per quarter $65,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Transcribed Image Text:Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $28 per unit sold $185,000 per quarter 6% of sales Cost Formula $51,000 per quarter + $4.00 per unit sold $95,000 per quarter $10,500 per quarter $65,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS