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Production costs: Direct materials Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belman Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Extimated Variable Cont Fixed Cost (per unit sold) Direct labor Factory overhead 10 $548,400 8 Selling exp Sales salaries and commissions Advertising 114,000 3 38,500 Travel 8,600 Miscelaneous selling expense 9,400 3 Adminstrative expenses: Office and officers' salaries 111,400 Supple Miscelaneous administrative expense 13,700 12,700 $855,800 2 $42 It is expected that 10,200 units wil be sold at a price of $168 a unit. Maximum sales within the relevant range are 13,000 units. Required! 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Line Item Description Cast of grack sold: Direct materials Direct abor Factory overhead Total cost of goods sold Gross profit Гарипек: Selling expenses: Sales salaries and commissions Advert sing Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Inial administrative spess Total expenses Operating Income Amount Amount Amount 00 000

Production costs: Direct materials Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belman Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Extimated Variable Cont Fixed Cost (per unit sold) Direct labor Factory overhead 10 $548,400 8 Selling exp Sales salaries and commissions Advertising 114,000 3 38,500 Travel 8,600 Miscelaneous selling expense 9,400 3 Adminstrative expenses: Office and officers' salaries 111,400 Supple Miscelaneous administrative expense 13,700 12,700 $855,800 2 $42 It is expected that 10,200 units wil be sold at a price of $168 a unit. Maximum sales within the relevant range are 13,000 units. Required! 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Line Item Description Cast of grack sold: Direct materials Direct abor Factory overhead Total cost of goods sold Gross profit Гарипек: Selling expenses: Sales salaries and commissions Advert sing Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Inial administrative spess Total expenses Operating Income Amount Amount Amount 00 000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PA: Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating...
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Production costs: Direct materials Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belman Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Extimated Variable Cont Fixed Cost (per unit sold) Direct labor Factory overhead 10 $548,400 8 Selling exp Sales salaries and commissions Advertising 114,000 3 38,500 Travel 8,600 Miscelaneous selling expense 9,400 3 Adminstrative expenses: Office and officers' salaries 111,400 Supple Miscelaneous administrative expense 13,700 12,700 $855,800 2 $42 It is expected that 10,200 units wil be sold at a price of $168 a unit. Maximum sales within the relevant range are 13,000 units. Required! 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Line Item Description Cast of grack sold: Direct materials Direct abor Factory overhead Total cost of goods sold Gross profit Гарипек: Selling expenses: Sales salaries and commissions Advert sing Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Inial administrative spess Total expenses Operating Income Amount Amount Amount 00 000
Transcribed Image Text:Production costs: Direct materials Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belman Co. expects to maintain the same inventories at the end of 2017 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Extimated Variable Cont Fixed Cost (per unit sold) Direct labor Factory overhead 10 $548,400 8 Selling exp Sales salaries and commissions Advertising 114,000 3 38,500 Travel 8,600 Miscelaneous selling expense 9,400 3 Adminstrative expenses: Office and officers' salaries 111,400 Supple Miscelaneous administrative expense 13,700 12,700 $855,800 2 $42 It is expected that 10,200 units wil be sold at a price of $168 a unit. Maximum sales within the relevant range are 13,000 units. Required! 1. Prepare an estimated income statement for 2017. Belmain Co. Estimated Income Statement For the Year Ended December 31, 2017 Line Item Description Cast of grack sold: Direct materials Direct abor Factory overhead Total cost of goods sold Gross profit Гарипек: Selling expenses: Sales salaries and commissions Advert sing Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Inial administrative spess Total expenses Operating Income Amount Amount Amount 00 000
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