Comfirm Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6]Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,513 per unit and then sells them toretail customers for an average price of $2,800 each. The company's selling and administrative costs for a typical month are presentedbelow:CostsSelling:AdvertisingSales salaries and commissionsDelivery of pianos to customersUtilitiesDepreciation of sales facilities.Administrative:Cost Formula$952 per month$4,774 per month, plus 4% of sales$59 per piano sold$664 per month$5,017 per monthExecutive salaries.InsuranceClericalDepreciation of office equipmentDuring August, Marwick's Pianos, Incorporated, sold and delivered 59 pianos.Required:1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per-unit basis downthrough contribution margin.$13,430 per month$683 per month$2,526 per month, plus $38 per piano sold$856 per monthRequired 1 Required 2Complete this question by entering your answers in the tabs below.Prepare a traditional format income statement for August.Note: A "Net operating loss" should be entered as a negative number. Prepare a traditional format income statement for August.Note: A "Net operating loss" should be entered as a negative number.Marwick's Pianos, IncorporatedTraditional Income StatementFor the Month of AugustSalesCost of goods soldGross marginSelling and administrative expenses:Selling expenses:AdvertisingSales salaries and commissionsDelivery of pianosUtilitiesDepreciation of sales facilitiesTotal selling expensesAdministrative expenses:Executive salariesInsuranceClericalDepreciation of office equipmentTotal administrative expensesTotal selling and administrative expensesNet operating income$95211,3823,4816645,01721,49613,4306834,76885619,737$ 165,20089,26775,933$41,23334,700

Lets understand the basics.The income statement indicates the earnings of a particular business in…

Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,800 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Cost Formula $952 per month $4,774 per month, plus 4% of sales $59 per piano sold $664 per month $5,017 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 59 pianos. $13,430 per month $683 per month $2,526 per month, plus $38 per piano sold $856 per month Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per-unit basis down through contribution margin.

Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,800 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Cost Formula $952 per month $4,774 per month, plus 4% of sales $59 per piano sold $664 per month $5,017 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 59 pianos. $13,430 per month $683 per month $2,526 per month, plus $38 per piano sold $856 per month Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per-unit basis down through contribution margin.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

GrandSlam Inc. incurred the following costs during March: $158,600 290,000 42,300 100,050 485,000 123,400 Selling expenses Direct labor Interest expense Manufacturing overhead, actual Raw materials used Administrative expenses During the month, 18,500 units of product were manufactured and 11,100 units of product were sold. On March 1, GrandSlam carried no inventories. On March 31, there were no inventories for raw materials or work in process. Required: a. Calculate the cost of goods manufactured during March and the average cost per unit of product manufactured. b. Calculate the cost of goods sold during March. c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements? d. Prepare a traditional (absorption) income statement for GrandSlam for the month of March. Assume that sales for the month were $1,043,000 and the company's effective income tax rate was 35%. Complete this question by entering…
Prepare an income statement for Rex Manufacturing for the year ended December 31 using the following information. Hint. Not all information given is needed for the solution. 0 Finished goods inventory, ending General and administrative expenses Accounts receivable Finished goods inventory, beginning Cost of goods manufactured Selling expenses Cash Land Sales. Equipment Cost of goods sold $ 17,900 15,900 19,900 20,900 41,900 13,900 56,900 29,900 95,800 2,900 REX MANUFACTURING Income Statement For Year Ended December 31
Current Attempt in Progress Presented below is selected information for Sheffield Company for the month of March 2022. Cost of goods sold Freight-out Insurance expense Salaries and wages expense (a) $210,900 7,460 5,260 59,760 Rent expense Sales discounts Sales returns and allowances Sales revenue $31,080 8,000 SHEFFIELD COMPANY Income Statement 12,000 390,000 Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses eg. (45).) $
Requirements 1. Prepare the company's January, multistep income statement. Calculate income using the LIFO, average-cost, and FIFO methods. Label the bottom line "Operating income." Round the average cost per unit to three decimal places and all other figures to whole-dollar amounts. Show your computations. 2. Suppose you are the financial vice president of Ohio Instruments. Which inventory method will you use if your motive is to a. minimize income taxes? b. report the highest operating income? c. report operating income between the extremes of FIFO and LIFO? d. report inventory on the balance sheet at the most current cost? e. attain the best measure of net income for the income statemehi? State the reason for each of your answers. please answer all please answer all or skip do not waste question or time by giving incomplete or incorrect answer please provide answer with explanation computation formula please answer with steps thanks
Required information [The following information applies to the questions displayed below.] Use the following selected account balances of Delray Manufacturing for the year ended December 31. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases. Direct labor Indirect labor Repairs-Factory equipment Rent cost of factory building Selling expenses General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 2,700,000 112,000 146,000 190,000 515,000 618,000. 93,000 74,000 148,000 237,000 379,000 134,000 175,000 228,000 Prepare an income statement for Delray Manufacturing (a manufacturer). Assume that its cost of goods manufactured is $1,397,00
Cost of Goods Sold, Profit Margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured Selling expenses Administrative expenses Sales Finished goods inventory, January 1 Finished goods inventory, January 31 $4,490,000 530,000 340,000 6,600,000 880,000 775,000 (a) For the month ended January 31, determine Bandera's cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 Finished goods inventory, January 1 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, January 31 Cost of goods sold
(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16, 750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9, 800/12, 750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300 / 16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8, 000/ 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27, 500/53, 500 Indirect labor 12, 150 / 12, 260 Repairs-Factory equipment 4, 820/2, 350 Raw materials purchases 47,000/67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15,800 / 23,450
Prepare an income statement for Rex Manufacturing for the year ended December 31 using the following information. Hint Not all Information given is needed for the solution. Finished goods inventory, ending General and administrative expenses Accounts receivable Finished goods inventory, beginning Cost of goods manufactured Selling expenses Cash Land Sales Equipment Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit $ 16,800 14,800 18,800 REX MANUFACTURING Income Statement For Year Ended December 31 General and administrative expenses Selling expenses Net income 19,800 40,800 12,800 55,800 28,800 93,600 1,800 $ 19,800 40,800 60,600 16,800 Saved $ 93,200 40,800 H
Sales Cost of goods sold Sales returns and allowances Operating expenses: Thompson's Company Income Statement For the Month Ended August 31, 2021 Net income $ 6,700 1,100
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured elling expenses dministrative expenses ales inished goods inventory, January 1 inished goods inventory, January 31 . For the month ended January 31, determine Bandera Manufacturing's cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 . For the month ended January 31, determine Bandera Manufacturing's gross profit. Bandera Manufacturing Company Gross Profit January 31 . For the month ended January 31, determine Bandera Manufacturing's net income. Bandera Manufacturing Company Net Income January 31 $167,280 55,880 29,540 355,910 40,220 36,660 Operating expenses: Total operating expenses 100
Presented below is information for Chivu Company for the month of March 2020: Cost of goods sold s50,000 Salaries and wages Expense S8,000 Sales Revenue Freight-out 7.000 as0,000 Sales Returns and Allowances interest Expense 4,000 3,000 Required: Prepare a multiple-step income statement for the month of March by completing the following Salaries and wages Expense Operating Expense Total Operating Expense
Presented below is selected information for Ivanhoe Company for the month of March 2024. Cost of goods sold Delivery expense Insurance expense Salaries expense $218,299 8,117 6,500 57,500 Sales Rent expense Sales discounts Sales returns and allowances Prepare a multiple-step income statement. 29,700 7,700 13,300 440,000