Question

The Windshield Doctors repair chips in car windshields. The company incurred the following operating costs for the month of March 2018: (Click the icon to view the operating costs.) The Windshield Doctors earned $23,000 in service revenues for the month of March by repairing 500 windshields. All costs shown are considered to be directly related to the repair service. Read the requirements. i Data Table Requirement 1. Prepare an income statement for the month of March The Windshield Doctors Income Statement Month Ended March 31, 2018 $ Salaries and wages Windshield repair materials Depreciation on truck Depreciation on building and equipment Supplies used Revenues: 12,000 4,600 300 1,200 300 460 Expenses: Utilities Print Done i Requirements Total Expenses Operating Income (Loss) 1. 2. 3. Prepare an income statement for the month of March. Compute the cost per unit of repairing one windshield. The manager of Windshield Doctors must keep unit operating cost below $50 per windshield in order to get his bonus. Did he meet the goal? Choose from any list or enter any number in the input fields and then click Check Ansy

Answer 1

Amount $ Amounts 23,000 12,000 1) Windshield doctors Income statement for the year ended 31st March 2018 - Particulars Net service revenue Less: Expenses Salaries and wages Materials expense Depreciation Expense - Truck Depreciation Expense – Building and Equipment Supplies Expense Utilities Expense Operating Cost Operating Income 4,600 300 1,200 300 460 18,860 4,140 2) Cost per Unit - Total expenses/Total windshields repaired - (18860/500) - $ 37.727. 3) The manager of Windshield doctors has kept the Operating cost below 5 50 per windshield (that is S 37.727. So he is eligible for bonus.