Question 8.1 T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as follows: Customer 1Customer 2Revenues at list price $592,500$102,000Units sold75,00010,000Unit list price $7.90$10.20Cost of goods per unit$5.10$6.25Sales discounts $11,850$1,020Customer-specific costs Order-taking$13,600$1,500Product-handling $14,100$1,350Delivery $9,400$1,290 Required:Prepare a comparative income statement in gross margin format with one column for each customer; present customer-specific costs as period expenses.

preparation of comparative income statement are as follows

Answered: T2 Manufacturing Ltd. manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 8.1

T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as follows:

	Customer 1	Customer 2
Revenues at list price	$592,500	$102,000
Units sold	75,000	10,000
Unit list price	$7.90	$10.20
Cost of goods per unit	$5.10	$6.25
Sales discounts	$11,850	$1,020
Customer-specific costs
Order-taking	$13,600	$1,500
Product-handling	$14,100	$1,350
Delivery	$9,400	$1,290

Required:

Prepare a comparative income statement in gross margin format with one column for each customer; present customer-specific costs as period expenses.

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