The following quarterly information is given for Raybon for the year ended 2018 (amounts shown are in millions):
Required
a. Divide the class into groups and organize the groups into four sections. Assign each section financial information for one of the quarters.
(1) Each group should compute the cost of goods sold and operating expenses for the specific quarter assigned to its section and prepare a multistep income statement for the quarter.
(2) Each group should compute the gross margin percentage and cost of goods sold percentage for its specific quarter.
(3) Have a representative of each group put that quarter’s sales, cost of goods sold percentage, and gross margin percentage on the board.
Class Discussion
b. Have the class discuss the change in each of these items from quarter to quarter and explain why the change might have occurred. Which was the best quarter and why?
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Chapter 3 Solutions
Survey Of Accounting
- Cooper Audio Systems produces car sound systems. Estimated sales (in units) are 45,000 in April, 38,000 in May, and 36,500 in June. Each unit is priced at $75. Cooper wants to have 40% of the following month's sales in ending inventory. That requirement was met on April 1. Each sound system requires 4 speakers and 10 feet of wiring. Speakers cost $6 each, and wiring is $0.50 per foot. Cooper wants to have 25% of the following month's production needs in ending raw materials inventory. On April 1, Cooper had 30,000 speakers and 95,000 feet of wire in inventory. What is Cooper's expected sales revenue for May?arrow_forwardGeneral accounting questionarrow_forwardNeed answerarrow_forward
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