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Business Accounting MANAGERIAL ACCT W/ACCESS

1. To prepare: A contribution format income statement for the next quarter. Contribution Format Income statement: Contribution format income statement shows the sales revenue, deduction of product and period cost from the sales revenue and then identification of contribution margin. It shows the net income while deduct the fixed income from the contribution margin. Solution: Company M Income Statement For the Quarter.. Particulars Details($) Amount($) Sales ( 12 , 000 × 100 ) 1,200,000 Less: Variable expense Cost of goods sold ( 12 , 000 × 35 ) 420,000 Shipping expense ( 12 , 000 × 9.10 ) 109,200 Selling commission ( 1 , 200 , 000 × 6 % ) 72,000 (601,200) Contribution margin 598,800 Less: Fixed cost Administrative expense 145,000 Advertising expense 210,000 Shipping expense 28,000 Insurance expense 9,000 Depreciation expense 76,000 (468,000) Net operating income 130,800 Table(1) 2. To prepare: A traditional format income statement for the next quarter. Traditional Format Income statement: Traditional format income statement shows the sales revenue, deduction of product cost from the sales revenue and then identification of gross margin. Selling and administration expenses are deducted from gross margin to calculate net operating income. Solution: Company M Income Statement For the Quarter.. Particulars Details($) Amount($) Sales ( 12 , 000 × 100 ) 1,200,000 Cost of goods sold ( 12 , 000 × 35 ) (420,000) Gross margin 780,000 Selling and administrative expense: Selling expense ( 210 , 000 + 72 , 000 + 109 , 200 + 28 , 000 ) 419,200 Administrative expense ( 145 , 000 + 9 , 000 + 76 , 000 ) 230,000 (649,200) Net operating income 130,800 Table(2)

1. To prepare: A contribution format income statement for the next quarter. Contribution Format Income statement: Contribution format income statement shows the sales revenue, deduction of product and period cost from the sales revenue and then identification of contribution margin. It shows the net income while deduct the fixed income from the contribution margin. Solution: Company M Income Statement For the Quarter.. Particulars Details($) Amount($) Sales ( 12 , 000 × 100 ) 1,200,000 Less: Variable expense Cost of goods sold ( 12 , 000 × 35 ) 420,000 Shipping expense ( 12 , 000 × 9.10 ) 109,200 Selling commission ( 1 , 200 , 000 × 6 % ) 72,000 (601,200) Contribution margin 598,800 Less: Fixed cost Administrative expense 145,000 Advertising expense 210,000 Shipping expense 28,000 Insurance expense 9,000 Depreciation expense 76,000 (468,000) Net operating income 130,800 Table(1) 2. To prepare: A traditional format income statement for the next quarter. Traditional Format Income statement: Traditional format income statement shows the sales revenue, deduction of product cost from the sales revenue and then identification of gross margin. Selling and administration expenses are deducted from gross margin to calculate net operating income. Solution: Company M Income Statement For the Quarter.. Particulars Details($) Amount($) Sales ( 12 , 000 × 100 ) 1,200,000 Cost of goods sold ( 12 , 000 × 35 ) (420,000) Gross margin 780,000 Selling and administrative expense: Selling expense ( 210 , 000 + 72 , 000 + 109 , 200 + 28 , 000 ) 419,200 Administrative expense ( 145 , 000 + 9 , 000 + 76 , 000 ) 230,000 (649,200) Net operating income 130,800 Table(2)

MANAGERIAL ACCT W/ACCESS

MANAGERIAL ACCT W/ACCESS

17th Edition

ISBN: 9781264274017

Author: Garrison

Publisher: MCG

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Chapter 1 Solutions

MANAGERIAL ACCT W/ACCESS

Ch. 1 - Prob. 1Q Ch. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5Q Ch. 1 - Define the following terms: (a) cost behavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Prob. 8Q Ch. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...

Ch. 1 - What is the difference between a traditional...Ch. 1 - Prob. 12Q Ch. 1 - Prob. 13Q Ch. 1 - Prob. 14Q Ch. 1 - Prob. 1AE Ch. 1 - Prob. 2AE Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L012, L013, L014, L015, L016 Martinez Company’s...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6 Martinez...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 1 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 1 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 1 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 1 - Prob. 5E Ch. 1 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 1 - Prob. 7E Ch. 1 - EXERCISE 18 Product Costs and Period Costs;...Ch. 1 - Prob. 9E Ch. 1 - Prob. 10E Ch. 1 - EXERCISE 1—11 Cost Behavior; Contribution Format...Ch. 1 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 1 - Prob. 13E Ch. 1 - EXERCISE 1-14 Cost Classification 1O1–2, LO1–3,...Ch. 1 - Prob. 15E Ch. 1 - EXERCISE 1–16 Cost Classifications for Decision...Ch. 1 - EXERCISE 1-17 Classifying Variable and Fixed Costs...Ch. 1 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 1 - PROBLEM 1-19 Traditional and Contribution Format...Ch. 1 - PROBLEM 120 Variable and Fixed Costs; Subtleties...Ch. 1 - Prob. 21P Ch. 1 - Prob. 22P Ch. 1 - PROBLEM 123 Cost Classification LO11, LO13, LO14...Ch. 1 - PROBLEM 1-24 Different Cost Classifications for...Ch. 1 - Prob. 25P Ch. 1 - CASE 1-26 Cost Classification and Cost Behavior...Ch. 1 - Prob. 27C

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