Data Section: Fixed Variable Production costs: Direct materials $2.30 Direct labor 4.70 $225,000 Factory overhead Selling expenses: Sales salaries & commissions 3.00 97,000 0.75 Advertising Miscellaneous selling expense General expenses: Office salaries Supplies Miscellaneous general expense 47,500 16,200 92,000 12,300 0.25 15,000 Total $505,000.00 $11.00 Additional information: Selling price per unit Expected unit sales Target profit $16.00 120,000 $20,000 Answer Section: Contribution margin per unit Contribution margin (Total) Contribution margin ratio Break-even point in units Break-even point in sales dollars Target profit (Unit sales needed) Target profit (Dollar sales needed) $5.00 $600,000.00 31.25% FORMULAG FORMULAT FORMULAB FORMULAS Total revenue at expected unit sales FORMULA10 Net income at expected unit sales FORMULA11 Margin of safety as a percentage of sales FORMULA12 Sheet1
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Accounting practice problem (first three sub parts have been answered , just need remaining sub parts answered)- I attached a picture of the instructions and I attached a picture of the excel spreadsheet. Anywhere it says "formula" on the excel spreadsheet, needs the formulas (answers).
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what is margin of safety as a percentage of sales
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