Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail Customers for an average price or S2,100 each. The company's selling and administrative costs for a typical month are presented below Costs Cost Formuala Selling $965 per month Advertising $4,793 per month plus 5% of Sales Sales Salaries and commissions $57 per piano sold Delivery of Pianos to customers $670 per month Utilities $4,903 per month Depreciaiton of Sales Facilities Administrative Executive Salaries $13,506 per month Insurance $701 per month Clerical $2,480 per month,plus $ 37 per piano sold Depreciation of Office Equipment $916 per month During August, Marvik Pianos sold and delivered 63 pianos. Prepare Traditional Income Statement and also prepare contribution format income statement for cost(Show costs and revenues on both a total and a per unit basis down through contribution margin)

Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail Customers for an average price or S2,100 each. The company's selling and administrative costs for a typical month are presented below Costs Cost Formuala Selling $965 per month Advertising $4,793 per month plus 5% of Sales Sales Salaries and commissions $57 per piano sold Delivery of Pianos to customers $670 per month Utilities $4,903 per month Depreciaiton of Sales Facilities Administrative Executive Salaries $13,506 per month Insurance $701 per month Clerical $2,480 per month,plus $ 37 per piano sold Depreciation of Office Equipment $916 per month During August, Marvik Pianos sold and delivered 63 pianos. Prepare Traditional Income Statement and also prepare contribution format income statement for cost(Show costs and revenues on both a total and a per unit basis down through contribution margin)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,491 per unit and then sells them to retail customers for an average price of $3,200 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 $960 per month $4,813 per month, plus 4% of sales $57 per piano sold $632 per month $4,934 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 62 pianos. $13,486 per month $712 per month $2,487 per month, plus $37 per piano sold $857 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…
Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,503 per unit and then sells them to retail customers for an average price of $2,500 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 $943 per month $4,780 per month, plus 5% of sales $62 per piano sold $638 per month $5,012 per month Depreciation of sales facilities Administrative: Executive salaries $13,474 per month Insurance $688 per month Clerical $2,464 per month, plus $37 per $927 per month Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 61 pianos. Lano sold 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…
Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,502 per unit and then sells them to retail customers for an average price of $2,400 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 $944 per month $4,810 per month, plus 5% of sales $61 per piano sold $638 per month $4,920 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 64 pianos. $13,534 per month $685 per month $2,492 per month, plus $39 per piano sold $945 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…
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of S 1,507 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 Cost Formula Selling: Advertising $937 per month Sales salaries and commissions $4,790 per month, plus 5% of sales Delivery of pianos to customers $61 per piano sold Utilities $645 per month Depreciation of sales facilities $5,027 per month Administrative: Executive salaries $13,534 per month Insurance $710 per month Clerical $2,535 per month, plus $41 per piano sold Depreciation of office equipment $928 per month During August, Marwick's Pianos, Incorporated, sold and delivered 63 pianos. Required: Prepare a traditional format income statement for August. 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.
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arwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail customers for an average price of $3,100 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 963 per month Sales salaries and commissions $ 4,816 per month, plus 3% of sales Delivery of pianos to customers $ 59 per piano sold Utilities $ 640 per month Depreciation of sales facilities $ 5,100 per month Administrative: Executive salaries $ 13,519 per month Insurance $ 704 per month Clerical $ 2,471 per month, plus $38 per piano sold Depreciation of office equipment $ 926 per month During August, Marwick’s Pianos, Inc., sold and delivered 58 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…
Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick's Pianos Inc, sells pianos to its customer at an average price of $3,125 each. The selling and administrative costs that the company incurs in a typical month are presented below:Costs Cost FormulaSelling:Advertising $700 per monthSales salaries asnd commissions $950 per month, plus 8% of salesDelivery of pianos to customers $30 per piano soldUtilities $350 per monthDepreciation of sales facilities $800 per monthAdministrative:Executive salaries $2,500 per monthInsurance $400 per monthClerical $1,000 per month, plus $20 per piano soldDepreciation of office equipment $300 per monthDuring August, Marwick's Pianos, Inc., sold and delivered 40 pianos.Required:1. Prepare an income statement for Marwick's Pianos, Inc. for August. Use the traditional format, with costs organized by function.2. Redo (1) above, this…
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 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 Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.
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Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $3,400 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 948 per month Sales salaries and commissions $ 4,782 per month, plus 4% of sales Delivery of pianos to customers $ 57 per piano sold Utilities $ 664 per month Depreciation of sales facilities $ 4,905 per month Administrative: Executive salaries $ 13,450 per month Insurance $ 704 per month Clerical $ 2,469 per month, plus $44 per piano sold Depreciation of office equipment $ 928 per month During August, Marwick’s Pianos, Inc., sold and delivered 61 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…
Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,519 per unit and then sells them to retail customers for an average price of $3,000 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $968 per month Sales salaries and commissions $4,783 per month, plus 5% of sales Delivery of pianos to customers $60 per piano sold Utilities $661 per month Depreciation of sales facilities $5,069 per month Administrative: Executive salaries $13,430 per month Insurance $696 per month Clerical $2,538 per month, plus $38 per piano sold Depreciation of office equipment $884 per month During 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…
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Costs	Cost Formuala
Selling	$965 per month
Advertising	$4,793 per month plus 5% of Sales
Sales Salaries and commissions	$57 per piano sold
Delivery of Pianos to customers	$670 per month
Utilities	$4,903 per month
Depreciaiton of Sales Facilities
Administrative
Executive Salaries	$13,506 per month
Insurance	$701 per month
Clerical	$2,480 per month,plus $ 37 per piano sold
Depreciation of Office Equipment	$916 per month