Answer Searle Corporation, a merchandising company, reported the following results forJuly:Number of units sold2,700 unitsSelling price per unit$664 per unitUnit cost of goods sold$405 per unitVariable selling expense per unit$48 per unitTotal fixed selling expense$56,500Variable administrative expense per unit $13 per unitTotal fixed administrative expense$118,200Cost of goods sold is a variable cost in this company. The gross margin for Julyis?

Explanation of Gross Margin: Gross margin represents the difference between total sales revenue and…

Answered: Searle Corporation, a merchandising…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PB: When prices are falling (deflation), which costing method would produce the highest gross margin for...

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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. $ 480,000 $ 32,000 $ 320,000 $ 16,000 ? $ 19,200 $ 24,000 ? $ 96,000 $ 28,800 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 to Required 6 5 Prepare a contribution format income…
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Cost of Goods Sold As an accountant for Lee Company, your supervisor gave you the following calculations of the gross profit for the first quarter: Alternative Sales ($50 per unit) Cost of Goods Sold Gross Profit A $500,000 $200,000 $300,000 B 500,000 228,000 272,000 C 500,000 213,333 286,667 The three alternative cost flow assumptions are FIFO, average, and LIFO (the alternatives are not necessarily presented in this sequence). Lee uses the periodic inventory system. The computation of the cost of goods sold under each alternative is based on the following data: Units Cost/Unit Inventory, January 1 12,000 $20 Purchase, January 10 4,000 21 Purchase, February 15 6,000 22 Purchase, March 10 8,000 23 1. Prepare schedules proving the cost of goods sold shown here under each of the three alternatives. For average cost. LEE COMPANY Schedules of Cost of Goods Sold For First Quarter Ended March 31 FIFO LIFO Average Beginning…
Assume a merchandising company uses the high-low method to separate any mixed costs into their variable and fixed elements. It provided the following income statements: Sales in units. Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising Shipping Salaries and commissions Total selling and administrative expenses Net operating income Multiple Choice O $60,770 $64,170 What is the total estimated selling and administrative expense if the company sells 4,940 units? $59,370 May 4,800 $ 168,000 86,400 81,600 $64,310 17,000 16,800 29,600 63,400 $ 18,200 June 5,000 $ 175,000 90,000 85,000 17,000 17,500 30,000 64,500 $ 20,500 July 5,500 $ 192,500 99,000 93,500 17,000 19,250 31,000 67,250 $ 26,250
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Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %
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2)Fanelli Corporation, a merchandising company, reported the following resultsfor July:Number of units sold 5400Selling price per unit $ 590Unit cost of goods sold $ 406Variable selling expense per unit $ 58Total fixed selling expense $ 124,900Variable administrative expense per unit $ 28Total fixed administrative expense $ 206,800Cost of goods sold is a variable cost in this company.Required:a. Prepare a traditional format income statement for July.Fanelli CorporationFor the month of JulyTraditional Income Statement993,600Selling and administrative expenses:671,200$322,400b. Prepare a contribution format income statement for July.Fanelli CorporationFor the month of JulyContribution Format Income Statement2) 2Variable expenses:2,656,800529,200Fixed expenses:331,700$197,500 Please Provide Full Question Answer
The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative cost 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct? A. Lobo’s variable-costing income statement would reveal a gross margin of $270,000. B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. C. Lobo’s absorption-costing income statement would reveal a contribution margin of $330,000. D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. E. Lobo’s absorption-costing income statement would reveal a gross margin of $145,000.

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