Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers. To Differentiate: Between a merchandising business from a service business.

Question

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Answer 1

Question

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Blue Sky Company reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit. Production costs: Direct materials per unit Direct lavor per unit Variable overhead per unit Fixed overhead for the year $ 54 $ 20 $6 $ 4,62,000 Selling and administrative cost: Variable selling and administrative cost per unit Fixed selling and administrative cost per year Assume that this company uses variable costing. $ 9 $ 1,10,000 a. Determine its unit product cost (Omit the '$' sign in your response.) b. Prepare its income statement for the year under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the '$' sign in your response.)

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Answer 2

Question

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 3

Question

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 4

Question

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Answer 5

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 6

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 7

Chapter 5, Problem 1DQ

To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Answer 8

Expert Solution & Answer

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details

Merchandising Company

Service Company

Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers. To Differentiate: Between a merchandising business from a service business.

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers. To Differentiate: Between a merchandising business from a service business.

Explanation of Solution

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Chapter 5 Solutions

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.