Prepare a traditional format income statement for the next quarter. Milden Company Traditional Format Income Statement For the Next Quarter Sales $2,100,000 Cost of goods sold 1,050,000 Gross margin Selling and administrative expenses: Shipping expense $215,000 Insurance expense 10,000 Cost of goods sold Advertising expense Depreciation expense 60,000 Administrative salaries Sales commissions 105,000 Advertising expense 180,000 Total selling and administrative expenses 570,000 Net operating income $390,000
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Prepare a traditional format income statement for the next quarter.
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