Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales.SalesCost of goods sold (all variable)Gross marginOperating expensesOperating incomeUnitSalesSalesrevenue$ 220,000Cost ofgoodssold$140,800Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit.Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for theamounts.)Flexible Budget79,20070,0009,200LASales Volume VarianceLAStatic Budget

A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…

Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income Unit Sales Sales revenue Cost of goods $ 220,000 Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) $ $ 140,800 Flexible Budget 79,200 70,000 9,200 $ Sales Volume Variance 100 $ Static Budget

Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,200 kits was prepared for the year. Fixed operating expenses account for 75% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income Unit Sales Sales revenue Cost of goods $ 220,000 Assume that Sheridan Sports actually sold 1,900 volleyball kits during the year at a price of $102 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) $ $ 140,800 Flexible Budget 79,200 70,000 9,200 $ Sales Volume Variance 100 $ Static Budget

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit $ 25 Variable expense per unit $ 17 Fixed expense per month $6,880 Unit sales per month 1,010 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
Maulana Sdn Bhd (MSB) manufactures and sells two types of products: Pastry roller and Pastry puff .Each unit of product consumes two types of materials, butter and cheese. MSB is preparing its annual budget for the year ending December 31, 2018. The Assistant Accountant provides the following data: Pastrv roller Pastry puff Sales unit 65,000 55,000 Unit selling price RM30 RM20 MSB decided that the beginning and ending inventory for the year 2018 are as follow: Product Beginning inventory(units) Ending inventory(units) Pastry roller 8,000 9,000 Pastry puff 5,000 4,000 +The following materials are needed for the production of pastry roller and pastry puff: Materials: Pastry roller Pastry puff Beginning Ending inventory (kg) inventory (kg) Butter 10 kg 8 kg 272,000 290,000 Cheese 4 kg 3 kg 60,000 41 ,000 Materials: Price per kg Butter RM2.00 Cheese RM8.00 Direct labour per unit and direct labour co ber unit is given below: Hours needed Rate per hour Pastry roller 2 hours Pastry puff 1.5…
XYZ Company produces and sells one product. The budgeted selling price per unit is $30. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2, 100 units, 3,400 units. 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month folowing sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $70,500 O c $94,000 O d. $96,300 O e. $82.250
Hardev
XYZ Company produces and sells one product. The budgeted selling price per unit is $60. Budgeted unit sales for July, August, September, October and November are 1,400 units, 2,100 units, 3,400 units, 2,700 units and 4,200 units, respectively. All sales are on credit. Regarding credit sales, 30% are collected in the month of the sale, 50% in the month following sales, and the remaining 20% in the second month following sale. The expected total cash collections in September is closest to: Select one: O a. None of the given answers O b. $141,000 O c. $129,250 O d. $117,500 O e. $192,600
s
please answer this with must explanation , computation , for each steps and each parts answer in text form
Capid Corporation is a wholesaler of industrial goods. Capid purchases 40% of its industrial goods in the month prior to the sale and 60% in the month of the sale. Capid’s cost of goods sold is 75% of sales. Capid budgeted sales of industrial goods are: November $135,000 December $150,000 January $125,000 What is the dollar value of Capid’s purchases in November and December?
Prepare a monthly flexible selling expense budget for Podism Company for sales volumes of $270,000, $350,000, and $480,000, based on the following data: Sales commissions 7% of sales Sales manager's salary $62,000 per month Advertising expense $70,000 per month Shipping expense 2% of sales Miscellaneous selling expense $2,500 per month plus 1/2% of sales Podism Company Monthly Selling Expense Budget Sales volume $270,000 $350,000 $480,000 Variable expense: Sales commissions 18,900 $4 24,500 33,600 Shipping expense 5,400 7,000 9,600 Miscellaneous selling expense 1,350 1,750 2,400 Total variable expense $4 $4 25,650 33,250 45,600 Fixed expense: Sales manager's salary 62,000 62,000 62,000 Advertising expense 70,000 70,000 70,000 Miscellaneous selling expense 2,500 2,500 2,500 Total fixed expense 134,500 134,500 134,500 Total selling expense 167,750 180,100
Fun Foot buys hiking socks for $5 a pair and sells them for $10. Management budgets monthly fixed expenses of $35,000 for sales volumes between 0 and 12,000 pairs. Requirements 1. Use the income statement approach and the shortcut unit contribution margin approach to calculate monthly breakeven sales in units. 2. Use the shortcut contribution margin ratio approach to compute the breakeven point in sales revenue (sales dollars). 3. Calculate the monthly sales level (in units) required to earn a target operating income of $11,000. Use either the income statement approach or the shortcut contribution margin approach. 4. Prepare a graph of Fun Foot's CVP relationships. Draw the sales revenue line, the fixed expense line, and the total expense line. Label the axes, the breakeven point, the operating income area, and the operating loss area. Requirement 1. Use the income statement approach and the shortcut unit contribution margin approach to calculate monthly breakeven sales in units. Let's…
Mohan Agribusiness Corporation is a distributor of an Agricultural product. Data concerning next month’s budget appear below: Selling price $25 per unit Variable Expenses $15 per unit Fixed Expenses $8,500 per month Unit Sales 1,000 units per month Required: 1. Compute the company’s margin of safety. Show your solution. (10 points) 2. Compute the company’s margin of safety as a percentage of its sales. Show your solution. (10 points)
Kids Clothing NZ Ltd makes both cash and credit sales. The company’s information regarding budgeted sales for the last quarter of the year is as follows: October November DecemberCash sales $100,000 $120,000 $ 80,000Credit sales 100,000 150,000 90,000Total $200,000 $270,000 $170,000 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Kids Clothing is approximately 30%.) All merchandise purchases are made on credit, with 25% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are…