Differential Analysis for a Discontinued ProductThe condensed product-line income statement forRhinebeck Company for the month of October is asfollows:SalesCost of goods soldGross profitSelling and administrative expensesOperating income (loss)Rhinebeck CompanyRevenues.Costs:Product-Line Income StatementFor the Month Ended October 31Fixed costsVariable cost of goods soldVariable selling and admin.expensesProfit (Loss)HatsFixed costs are 15% of the cost of goods sold and 42%of the selling and administrative expenses. RhinebeckCompany assumes that fixed costs would not bematerially affected if the Gloves line were discontinued.a. Prepare a differential analysis dated October 31 todetermine if Mufflers should be continued (Alternative 1)or discontinued (Alternative 2). If an amount is zero,enter "0". If required, use a minus sign to indicate aloss.$65,200(27,000)$38,200(28,500)$9,700Differential AnalysisContinue (Alt. 1) or Discontinue (Alt. 2) MufflersOctober 31Gloves$89,300(32,000)$57,300(34,200)$23,100Mufflers$27,000(14,800)$12,200(16,000)$(3,800)ContinueDiscontinueMufflersMufflers(Alternative (Alternative1)2)b. Should the Mufflers line be retained?DifferentialEffects(Alternative2)

Differential analysis compared cost the revenues and costs in case of continuance and discontinuance…

Hats $65,200 (27,000) $38,200 (28,500) $9,700 Gloves $89,300 (32,000) $57,300 (34,200) $23,100 Muffler $27,00 (14,80 $12,20 (16,00 $(3,80 of goods sold s profit g and administrative expenses ating income (loss) ed costs are 15% of the cost of goods sold and 42%

Hats $65,200 (27,000) $38,200 (28,500) $9,700 Gloves $89,300 (32,000) $57,300 (34,200) $23,100 Muffler $27,00 (14,80 $12,20 (16,00 $(3,80 of goods sold s profit g and administrative expenses ating income (loss) ed costs are 15% of the cost of goods sold and 42%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4E: Differential analysis for a discontinued product The condensed product-line income statement for...

See similar textbooks

Similar questions

Differential analysis for a discontinued product A condensed income statement by product line for Warrick Beverage Inc. indicated the following for Mango Cola for the past year: It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 25% of the operating expenses are fixed. Because Mango Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated February 29 to determine whether Mango Cola should be continued (Alternative 1) or discontinued (Alternative 2). b. Should Mango Cola be retained? Explain.
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Provide answer of this Question with general Accounting Method
Please do not give solution in image format thanku
None
Give true answer the general accounting question
select choice
Winslow Inc. Product Income Statements-Absorption Costing For the Year Ended December 31, 20Y1 Cross Training Shoes Golf Shoes Running Shoes Revenues $351,800 $214,600 $178,100 Cost of goods sold 182,900 105,200 119,300 Gross profit $168,900 $109,400 $58,800 Selling and administrative expenses 145,300 78,800 98,200 Income (loss) from operations $23,600 $30,600 $(39,400) In addition, you have determined the following information with respect to allocated fixed costs: Cross Golf Running Training Shoes Shoes Shoes Fixed costs: Cost of goods sold $56,300 $27,900 $24,900 Selling and administrative expenses 42,200 25,800 24,900 These fixed costs are used to support all three product lines. In addition, you have determined that the inventory is negligible. The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate the running shoe line. Management does not expect to be able to increase sales in the other…
Prepare a schedule of cost of goods manufactured and an income statement for YNP corporation as of December 31, 2018. List whether the following fall primarily under managerial or financial accounting.