The departmental contribution margin income statement

Question

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Answer 1

Question

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

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Ans?

Please provide answer this financial accounting question

Job N5R was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,650 of direct materials and used $5,200 of direct labor. The job was not finished by the end of September but needed an additional $3,150 of direct materials and additional direct labor of $7,800 to finish the job in October. The company applies overhead at the end of each month at a rate of 250% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

Answer 2

Question

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

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Answer 3

Question

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

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Answer 4

Question

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

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Answer 5

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

Answer 6

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Answer 7

Chapter 24, Problem 7E

Requirement-1

To determine

To Prepare:

The departmental contribution margin income statement

Answer 8

Requirement-1

Expert Solution

Answer to Problem 7E

The departmental contribution margin income statement is as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Answer 9

Requirement-1

Expert Solution

Answer 10

Requirement-1

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Answer 13

Requirement-2

To determine

If the Electric Division should be eliminated

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.

Answer 14

Requirement-2

To determine

If the Electric Division should be eliminated

Answer 15

Requirement-2

Expert Solution

Answer to Problem 7E

Electric Division should not be eliminated.

Answer 16

Requirement-2

Expert Solution

Answer 17

Requirement-2

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The departmental contribution margin income statement is prepared as follows:

Contribution Margin Income Statement
For the year ended Dec. 31, 2019

	Acoustic	Electric
Sales	$ 112,500	$ 105,500
Less: Variable Expenses:
Cost of Goods Sold	$ (55,675)	$ (66,750)
Salaries Expense	$ (17,300)	$ (13,500)
Supplies Expense	$ (2,030)	$ (1,700)
Contribution Margin	$ 37,495	$ 23,550

Less: Overheads (Fixed):
Advertising	$ (8,075)	$ (6,250)
Depreciation expense- Equipment	$ (10,150)	$ (9,000)
Rent	$ (6,105)	$ (5,950)
Utilities	$ (3,045)	$ (2,550)

Net Income (Loss)	$ 10,120	$(200)

Based on the above contribution margin income statement, Electric division as positive contribution for the overhead, hence this division should not be eliminated.