The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for thequarter ended March 31:SalesSelling price per pair of skisVariable selling expense per pair of skisVariable administrative expense per pair of skisTotal fixed selling expenseTotal fixed administrative expenseBeginning merchandise inventoryEnding merchandise inventoryMerchandise purchasesRequired 1 Required 2 Required 3Amount$ 1,290,000$ 430Required:1. Prepare a traditional income statement for the quarter ended March 31.2. Prepare a contribution format income statement for the quarter ended March 31.3. What was the contribution margin per unit?Selling and administrative expenses:$45$16$ 145,000$ 120,000$ 70,000Complete this question by entering your answers in the tabs below.< Required 1$ 105,000$ 300,000Prepare a traditional income statement for the quarter ended March 31.The Alpine House, IncorporatedTraditional Income StatementRequired 2 >

In the Traditional Income statement, we find out the operating income as usual. In the contribution…

The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount $ 1,290,000 $430 $45 $ 16 $ 145,000 $ 120,000 $ 70,000 $ 105,000 $ 300,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?

The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount $ 1,290,000 $430 $45 $ 16 $ 145,000 $ 120,000 $ 70,000 $ 105,000 $ 300,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?

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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The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Amount $984,000 $ 410 $ 48 $ 17 $ 155,000 $ 110,000 What was the contribution margin per unit? Note: Round your final answer to nearest whole dollar. Contribution margin per unit $ 75,000 $ 120,000 $285,000
Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 per unit for weeks 1 through 4. Compute the cost of goods available for sale and the units available for sale for this four-week period. Assume that no sales occur during those four weeks. Cost of Activity Units Units cost Goods Available Beginning Inventory 1st week purchase 2nd week purchase 3rd week purchase 4th week purchase Units available for sale Cost of goods available for sale
SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1 Product 2 Cost $50 $34 Replacement cost $48 $26 Selling price $70 $36 Selling costs $6 $4 Normal profit $10 $8 Determine the carrying value of SLR’s inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Product Cost Market Per Unit Inventory Value Unit Cost Lower of Cost or Market 1 1,000 2 1,000 26,000 Cost Inventory value What is the before-tax income effect of the LCM adjustment? (higher by/lower by/no effect) _______ (amount)
I don’t understand the formulas for these, especially selling expenses and administrative expenses. How do I calculate price per unit?
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases. Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Incorporated Contribution Format Income Statement Variable expenses: Amount $ 1,302,000 $ 420 $45 $ 20 $ 130,000 $ 100,000 $75,000 $ 115,000 $ 285,000 Fixed expenses: 0…
6. Required information Skip to question [The following information applies to the questions displayed below.]Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 3,000 $ 9 $ 27,000 Jan. 18 4,000 10 40,000 Totals 7,000 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 2,000 Jan. 12 1,000 Jan. 20 3,000 Total 6,000 5,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)
The purchase schedule for Lumbermans and Associates is as follows: Date Items Purchased Cost per Item March 15 6,000 $1.30 July 30 9,000 1.50 December 17 7,000 1.60 Total 22,000 The inventory balance as of the beginning of the year was $15,000 (15,000 units at $1), and an inventory count at year-end indicated that 11,000 items were on hand. Sales and operating expenses (excluding cost of goods sold) totaled $55,000 and $15,000, respectively. The federal income tax is 30 percent of taxable income. INSTRUCTIONS: Prepare three income statements, one under each of the assumptions: FIFO, average, and LIFO. How many tax dollars would be saved by using LIFO instead of FIFO? Assume that the market value of an inventory item dropped to $1.35 as of year-end. Apply the lower-of-cost-or market (net realizable value) rule, and provide the appropriate journal entry (if necessary) under the FIFO, average, and LIFO assumptions. Repeat (a) above assuming that the costs per item were…
Streif Incorporated, a local retailer, has provided the following data for the month of June: Merchandise inventory, beginning balance $ 46,000 Merchandise inventory, ending balance $ 52,000 Sales $ 260,000 Purchases of merchandise inventory $ 128,000 Selling expense $ 13,000 Administrative expense $ 40,000 The cost of goods sold for June was: a)128,000 b)181,000 c)122,000 d)134,000
Frigid Supplies reported beginning inventory of 200 units, for a total cost of $2,000. The companyhad the following transactions during the month:Jan. 3 Sold 20 units on account at a selling price of $15 per unit.6 Bought 30 units on account at a cost of $10 per unit.16 Sold 30 units on account at a selling price of $15 per unit.19 Sold 20 units on account at a selling price of $20 per unit.26 Bought 10 units on account at a cost of $10 per unit.31 Counted inventory and determined that 160 units were on hand.Required:1. Prepare the journal entries that would be recorded using a periodic inventory system.2. Prepare the journal entries that would be recorded using a perpetual inventory system,including any “book-to-physical” adjustment that might be needed.TIP: Adjust for shrinkage by decreasing Inventory and increasing Cost of Goods Sold.3. What is the dollar amount of shrinkage that you were able to determine in (a) requirement 1,and (b) requirement 2? Enter CD (cannot determine) if…
The Alpine House, Ic., is a large retaller of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount 946,000 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 430 49 19 24 150,000 105,000 24 70,000 110,000 24 305,000 Requlred: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc. Traditional Income Statement Selling and administrative expenses: Required 1 Required 2 >
The general merchandise retail industry has a number of segments represented by the following companies: Company Name Costco Wholesale Corporation Merchandise Concept Membership warehouse Wal-Mart Discount general merchandise JCPenney Company Department store For a recent year, the following cost of merchandise sold and beginning and ending inventories have been provided from corporate annual reports (in millions) for these three companies: Wal-Mart Costco JCPenney $365,086 Cost of merchandise sold $101,065 $8,074 Merchandise inventory, beginning Merchandise inventory, ending 45,141 8,908 2,721 8,456 44,858 2,652 a. Determine the inventory turnover ratio for all three companies. Round to two decimal places. b. Determine the days' sales in inventory for all three companies. Use 365 days and round to one decimal place. c. Interpret these results based on each company's merchandise concept.
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Incorporated Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net operating…