Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations.Sales (2,500 fruit bowls)Cost of goods soldManager's salary allocationRent cost allocationAdvertisingCommissions (10% of sales)What are the estimated total costs if Jenny's expects to sell 3,000 units next year?A) $86,700B) $98,700C) $76,700D) $88,700$100,00045,00020,0007002,00010,000E) $84,240

For businesses to make well-informed decisions about pricing strategies, production levels, and…

Answered: Sales (2,500 fruit bowls) Cost of goods…

Business

Accounting

Sales (2,500 fruit bowls) Cost of goods sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the cost of goods sold? SHIN Industries uses the average cost approach to- account for its…

A: The cost of goods sold is calculated as cost of goods available for sale minus cost of ending…

Q: Only typed solution

A: The objective of the question is to calculate the Cost of Goods Available for Sale, Cost of Goods…

Q: Cost of goods sold is $7,400. Beginning inventory is $3,500 and ending inventory is $4,000. If there…

A: Cost of goods sold = Beginning inventory + Net Purchases -Ending inventory Net Purchases = Cost of…

Q: The details of a Retail Merchandise business are: Sales revenues are RO 80,000 cost of goods sold is…

A: Net Profit = Total revenue - Total expenses

Q: Warner Co. is a manufacturer of wagons. How much will the company report as cost of goods sold on…

A: The cost of goods sold is the cost incurred to sell the goods to the customer. It includes the cost…

Q: Requirements 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What would the total expense be?

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Traditional and Contribution Format Income Statements Cherokee Inc. is a merchandiser that provided…

A: Income Statement is the statement which is prepared to calculate the profit of the business. There…

Q: Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would…

A: Goods costing $21,000 were sold for $52,000 on account

Q: 4 Calculate the cost of goods sold dollar value for A65 Company for the month using the first in…

A: Cost of goods sold (COGS) indicates the cost incurred by the corporation for making the product…

Q: Cherokee Incorporated is a merchandiser that provided the following information: Number of units…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: Number of units sold 13,000 Selling price per unit $ 17 Variable selling expense per unit $ 2…

A: The income statement is prepared to record the revenue and expenses for the current period. The…

Q: Calculation of Net income and Cost of Goods Sold

A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…

Q: Snyder’s cost of goods sold using the average-cost method would be:a. $1,725.b. $6,500.c. $7,475.d.…

A: Average cost method is a method of pricing issue of material. Under average cost method it is…

Q: Warner Co. is a manufacturer of wagons. How much will the company report as cost of goods sold on…

A: Cost of goods sold budget shows the expenses incurred for producing a product. Cost of goods sold is…

Q: The following transactions occurred for the month of May. Date Units Cost per Unit Total Cost Sales…

A: Under the LIFO method, the newest products in inventory are sold first.

Q: Beginning inventory Purchased goods during the period 240 Sold goods during the period Purchased…

A: Formula: Inventory Amount = Number of units x cost per unit.

Q: Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending…

A: We have the following information: Beginning Finished Goods Inventory: $70,000 Ending Finished…

Q: Assume the following information for a merchandising company: Number of units sold Selling price per…

A: Variable expenses are the expenses that keeps on changing with the change in the activity level or…

Q: Finished goods inventory, ending General and administrative expenses Accounts receivable Finished…

A: Income Statement: It is often defined as a financial statement that shows the net profits or income…

Q: Using the Cost of Goods Manufactured calculated in your sch cgm worksheet and adding data needed…

A: Cost of goods sold include the cost of goods that are sold during the period. Cost of goods sold =…

Q: SHIN Industries uses the average cost approach to account for its inventory. For the current year,…

A: Average Cost Method: This approach allocates a cost to inventory items based on the overall cost of…

Q: Zara retailer has an inventory turnover in the amount of 2.1, it’s average inventory is 15,500…

A: Inventory turnover ratio is the ratio between the cost of goods sold and average inventory.

Q: Computing cost of goods purchased and cost of goods sold. The following data are for Marvin…

A: Cost of Goods purchased : It is the net cost of merchandise purchased or acquired by the company.…

Q: From the following, calculate net sales: - - = Net sales - - = Data Table Cost…

A: Net sales = Gross Sales - Sales return and allowances - Sales discount

Q: Cherokee Incorporated is a merchandiser that provided the following information: Number of units…

A: The income statement is prepared by the management to identify the performance of the business. It…

Q: During the current year, merchandise is sold for $56,600 cash and for $87,400 on account. The cost…

A: Gross profit: Difference between the sales and the cost of goods sold is called gross profit. Gross…

Q: What is the cost of goods sold?

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Please help me

A: Mixed costs: These have high initial costs as a whole due to the presence of some fixed element in…

Q: Please solve the net purchases and cost of goods sold completely. Purchases- 705,000 Freight in -…

A: Formula: Net purchases = Purchases - Purchase discounts - Purchase returns and allowances

Q: Applying the Cost of Goods Sold Model Charest Company has the following data for 2022: Item Units…

A: Number of units sold = Opening inventory + Purchases - Closing Inventory. Under cost of goods sold…

Q: If Finished Goods Turnover is 5 , average Trade Receivables is 100.000, average Finished Goods is…

A: Finished Goods Turnover = Cost of goods sold / Average finished goods

Q: during the current year merchandise is sold for 151,400 cash and 627,700 on account. the cost of…

A: GROSS PROFIT Gross Profit is the Difference between Total Sales & Cost of Goods Sold. Cost of…

Q: Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would…

A: Sales are described as the term which is used when the business provides the goods or services to…

Q: Use lean accounting to prepare journal entries for the following transactions. 1. Sold $33,250 of…

A: Lean accounting: It refers to a management accounting that focuses on reducing the work and pressure…

Q: Assume the following information for a merchandising company: Number of units sold Selling price per…

A: The difference between the sales and the cost of goods sold is called gross profit. Gross profit…

Q: Costs of $5,000 were incurred to acquire goods and make them ready for sale. The goods were shipped…

A: Buyer’s total cost of merchandise inventory = Cost of goods purchased + Freight in + Additional…

Q: Cherokee Incorporated is a merchandiser that provided the following information: Number of units…

A: The traditional income statement is a statement that uses the cost of goods sold to derive gross…

Q: Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods…

A: In this question, we need to compute the Cost of goods sold for both trading/merchandising and…

Q: A company had expenses other than cost of goods sold of $270,000. Determine sales and gross profit…

A: Income Statement Is One Of The Three Major Financial Statements. Net Income Shows The Total Sales…

Q: Computing cost of goods sold and operating income, merchandising company Consider the following…

A: c. Selling and administrative expenses = Gross profit - Operating income = $40,000 - $12,000 =…

Question

Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations.
Sales (2,500 fruit bowls)
Cost of goods sold
Manager's salary allocation
Rent cost allocation
Advertising
Commissions (10% of sales)
What are the estimated total costs if Jenny's expects to sell 3,000 units next year?
A) $86,700
B) $98,700
C) $76,700
D) $88,700
$100,000
45,000
20,000
700
2,000
10,000
E) $84,240

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Working notes for the calculation of the total cost

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would include:* O A credit to Accounts Receivable $52,0o00 and a debit to Sales Revenue $52,000 A debit to Cost of Goods Sold $21,000 and a credit to Finished Goods Inventory $21,000 A debit to Cost of Goods Sold $52,000 and a credit to Finished Goods Inventory $52,000 None of the above Time tickets indicated 8.000labochours in thelnmduction of lob115.out.of
A merchandiser that provided the following information: Number of units sold 20,000 Selling price per unit $ 40 Variable selling expense per unit $ 5 Variable administrative expense per unit $ 2 Total fixed selling expense $ 40,000 Total fixed administrative expense $ 40,000 Beginning merchandise inventory $ 28,000 Ending merchandise inventory $ 46,000 Merchandise purchases $ 190,000. Prepare a traditional income statement. 2.Prepare a contribution format income statement.
At the various activity levels shown, Harper Company incurred the following costs: 4 Units sold 20 40 60 80 100 a. Rental cost per unit of merchandise sold b. Total phone expense c. Cost per unit of supplies d. Total insurance cost e. Total salary cost f. Total cost of goods sold g. Depreciation cost per unit h. Total rent cost i. Total cost of shopping bags j. Cost per unit of merchandise sold 36.00 $ 18.00 2$ 120.00 12.00 2$ 9.00 2$ 7.20 80.00 100.00 140.00 160.00 1.00 1.00 1.00 1.00 1.00 480.00 480.00 480.00 480.00 480.00 1,200.00 1,600.00 2,000.00 2,400.00 7, 200.00 2,800.00 9,000.00 1,800.00 3,600.00 5,400.00 240.00 120.00 80.00 60.00 48.00 3,200.00 6.00 90.00 3,200.00 3,200.00 2.00 3,200.00 4.00 3,200.00 10.00 8.00 90.00 90.00 90.00 90.00 Required Identify each of these costs as fixed, variable, or mixed. a. b. С. d. e. f. g.
What is the cost of goods sold?
Cherokee Incorporated is a merchandiser that provided the following information: Amount 13,000 $ 18 $2 $2 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Required 1 Required 2 Variable expenses: Fixed expenses: ✓ ✔ *********---------- ✓$ • 45,000 $ 19,000 $ 16,000 $ 10,000 $ 25,000 $ 87,000 $ 234,000 Prepare a contribution format income statement. Cherokee, Incorporated Contribution Format Income Statement 26,000 x 208,000 x 45,000 0 0
Calculate gross profit from the following? Sales OMR 10000, Cost of goods sold OMR 4000 and Return inwards OMR 2000 а. OMR 10000 b. OMR 12000 С. OMR 4000 d. OMR 6000
Goods have been sold that cost $3.000 to make. Provide the journal entry to record the costs associated with the sale.
Use lean accounting to prepare journal entries for the following transactions. 1. Sold $16,800 of goods on credit. 2. Recorded cost of goods sold of $11,760.
Fill in the missing amounts. Sales revenue Sales returns and allowances (a) Net sales Cost of goods sold Gross profit Operating expenses Net income (b) (c) Pharoah Company $102,000 97,000 65,960 16,490 (d) $ (e) (f) Wildhorse Company 6,200 118,000 40,120 20,060
Calculate the gross profit percentage for the sale to Sarah’s cycles
Determine the total value of the merchandise using net realizable value. Selling Price Item Doll Quantity 10 Commission $2 $7 Horse )a. $80 b. $115 c. $35 )d. $25
Hh1. calculate net sales, cost of goods sold and gross profit from sales