Gorman Nurseries Inc. grows poinsettias and fruit trees in a greenhouse/nursery operation. The following information was provided for thecoming year.Sales$9,70,000 $31,00,000Variable cost of goods sold4,60,00016,30,0001,60,0002,00,000Direct fixed overheadA sales commission of 4% of sales is paid for each of the two productlines. Direct fixed selling and administrative expense was estimated tobe $146,000 for the poinsettia line and $87,000 for the fruit tree line.Common fixed overhead for the nursery operation was estimated to be$800,000; common selling and administrative expense was estimatedto be $450,000.Prepare a segmented income statement for Gorman Nurseries for thecoming year, using variable costing.

Step 1: Key Data ProvidedProduct Lines: Poinsettias and Fruit TreesSales:Poinsettias: $970,000Fruit…

Answered: Gorman Nurseries Inc. grows poinsettias…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. Poinsettias Fruit Trees Sales $970,000 $3,100,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable.
Required information [The following information applies to the questions displayed below.] California Orchards reports the following sales data for the year ended December 31. Grade of Walnuts Number 1 Number 2 Sales $ 448,800 367,200 Number 3 Total 204,000 $ 1,020,000 The company incurred the following joint costs for the year. $ Tree pruning and care 618,800 Pickup, sorting, and grading 176,800 2. Compute gross profit for each of the three grades of walnuts. Assume, cost of goods sold consists only of the joint costs. ✓ Answer is complete but not Gross ect. Grade Profit |Number 1 $ 99,760X Number 2 110,469X Number 3 44,171X Total $ 254,400
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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow.: Product Selling priee per unit Variable expensen per unit Traceable fixed expenses per year Weedban $ 10.00 $2.70 $ 129,000 Greengrow $ 40.00 $ 11.00 $ 45,000 Last year the company produced and sold 37,500 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income
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Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow; Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $9.00 $ 3.10 $ 135,000 Greengrow $34.00 $ 12.00 $ 34,000 Last year the company produced and sold 40,000 units of Weedban and 16,000 units of Greengrow. Its annual common fixed expenses are $104,000. $ Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban 0$ 0 0 Greengrow 0 $ 0
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950

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