Marwick's Pianos, Incorporated, purchases planos from a manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,600 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 Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $949 per month $4,805 per month, plus 6% of sales $59 per piano sold $643 per month $4,961 per month $13,505 per month $709 per month $2,498 per month, plus $39 per piano sold $872 per month During August, Marwick's Planos, Incorporated, sold and delivered 59 planos. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional format income statement for August. Note: A "Net operating loss" should be entered as a negative number. Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses
Marwick's Pianos, Incorporated, purchases planos from a manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,600 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 Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $949 per month $4,805 per month, plus 6% of sales $59 per piano sold $643 per month $4,961 per month $13,505 per month $709 per month $2,498 per month, plus $39 per piano sold $872 per month During August, Marwick's Planos, Incorporated, sold and delivered 59 planos. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional format income statement for August. Note: A "Net operating loss" should be entered as a negative number. Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no
Transcribed Image Text:Marwick's Pianos, Incorporated, purchases planos from a manufacturer for an average cost of $1,505 per unit and then sells them to
retail customers for an average price of $2,600 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
Depreciation of sales facilities
Administrative:
Executive salaries
Insurance
Clerical
Depreciation of office equipment
Cost Formula
$949 per month
$4,805 per month, plus 6% of sales
$59 per piano sold
$643 per month
$4,961 per month
$13,505 per month
$709 per month
$2,498 per month, plus $39 per piano sold
$872 per month
During August, Marwick's Planos, Incorporated, sold and delivered 59 planos.
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare a traditional format income statement for August.
Note: A "Net operating loss" should be entered as a negative number.
Marwick's Pianos, Incorporated
Traditional Income Statement
For the Month of August
Selling and administrative expenses:
Selling expenses
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