Q6- Benjamin Company has the following data: Budgeted Sales $108,000 132,000 144,000 120,000 Month January February March April Cost of goods sold average 60% of sales. The inventory at December 31 was $19,440. Desired ending inventory levels are 20% of next month's sales at cost. What is the desired ending inventory value at February 28? C-1laina oolog budget for the last

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Q6
Contribution margin ratio
60%
70%
Required:
1. Prepare Income statement for the company.
2. Calculate break-even point in dollars.
Q5- Amber Manufacturing provided the following information for last
month:
Sales
Variable costs
Fixed costs
$20,000
6,000
9,000
Operating income $5,000
If sales double next month, what is the projected operating income?
Q6- Benjamin Company has the following data:
Budgeted Sales
$108,000
132,000
144,000
120,000
Month
January
February
March
April
Cost of goods sold average 60% of sales. The inventory at December 31
was $19,440. Desired ending inventory levels are 20% of next month's
sales at cost. What is the desired ending inventory value at February
28?
Q7- Downstairs Company has the following sales budget for the last
six months of 2010:
July
August
September
October
$100,000
80,000
110,000
80,000
100,000
94,000
November
December
Transcribed Image Text:Contribution margin ratio 60% 70% Required: 1. Prepare Income statement for the company. 2. Calculate break-even point in dollars. Q5- Amber Manufacturing provided the following information for last month: Sales Variable costs Fixed costs $20,000 6,000 9,000 Operating income $5,000 If sales double next month, what is the projected operating income? Q6- Benjamin Company has the following data: Budgeted Sales $108,000 132,000 144,000 120,000 Month January February March April Cost of goods sold average 60% of sales. The inventory at December 31 was $19,440. Desired ending inventory levels are 20% of next month's sales at cost. What is the desired ending inventory value at February 28? Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Stock Market Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education