Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31:Total sales revenueSelling price per snowboardVariable selling expense per snowboardVariable administrative expense per snowboardTotal fixed selling expenseTotal fixed administrative expenseMerchandise inventory, beginning balance.Merchandise inventory, ending balanceMerchandise purchasesSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensesOperating incomeAnswer is complete but not entirely correct.Administrative expensesWinter LeisureTraditional Income StatementQuarter ended December 31Required:1. Prepare a traditional income statement for the quarter ended December 31.SalesVariable expenses:Selling expensesAdministrative expensesCost of goods soldContribution marginFixed expenses:Operating incomeSelling expensesAdministrative expenses>>Winter LeisureContribution Format Income StatementQuarter ended December 31333333S333400,000370,000 XAnswer is not complete.$ 1,521,000351,0001,170,0002. Prepare a contribution format Income statement for the quarter ended December 31.$ 400,000370,000S770,000400,000$ 1,521,000S$ 1,429,740Amount$1,521,0000$$$S 770,000S 400,000 X$$$3905525400,000370,00099,000$119,000$ 371,000 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not roundintermediate calculations. Round your final answer to nearest whole dollar.)ContributionAnswer is not complete.per snowboard4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenseswill occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest wholedollar.)Operating incomeX Answer is not complete.

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Description: Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31:Total sales revenueSelling price per snowboardVariable selling expense per snowboardVariable administrative expense per snowboardTotal fixed selli

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Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000

Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31:
Total sales revenue
Selling price per snowboard
Variable selling expense per snowboard
Variable administrative expense per snowboard
Total fixed selling expense
Total fixed administrative expense
Merchandise inventory, beginning balance.
Merchandise inventory, ending balance
Merchandise purchases
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Operating income
Answer is complete but not entirely correct.
Administrative expenses
Winter Leisure
Traditional Income Statement
Quarter ended December 31
Required:
1. Prepare a traditional income statement for the quarter ended December 31.
Sales
Variable expenses:
Selling expenses
Administrative expenses
Cost of goods sold
Contribution margin
Fixed expenses:
Operating income
Selling expenses
Administrative expenses
>>
Winter Leisure
Contribution Format Income Statement
Quarter ended December 31
333
333
S
333
400,000
370,000 X
Answer is not complete.
$ 1,521,000
351,000
1,170,000
2. Prepare a contribution format Income statement for the quarter ended December 31.
$ 400,000
370,000
S
770,000
400,000
$ 1,521,000
S
$ 1,429,740
Amount
$1,521,000
0
$
$
$
S 770,000
S 400,000 X
$
$
$
390
55
25
400,000
370,000
99,000
$
119,000
$ 371,000

3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round
intermediate calculations. Round your final answer to nearest whole dollar.)
Contribution
Answer is not complete.
per snowboard
4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses
will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole
dollar.)
Operating income
X Answer is not complete.

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