Question

can someone please help by recreating these charts and filling in the amounts? i am having trouble sorting where they go

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown bel March 31 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount $1,350, eee 450 $ 49 $ 16 $ 145,000 $ 130,000 $ 65,000 $ 110,000 $ 305,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31 2. Prepare a contribution format income statement for the quarter ended March 31 3. What was the contribution margin per unit?

Answer 1

$1,350,000 $ 260,000 $1,090,000 The Alpine House, Inc. Traditional Income Statement Sales Cost of Goods Sold Gross Profit Selling and administrative expenses: Variable Selling expenses $ 147,000 Variable administrative Expenses $ 48,000 Fixed Selling expenses $ 145,000 Fixed administrative Expenses $ 130,000 Net Income $ 470,000 $ 620,000 $1,350,000 The Alpine House, Inc. Contribution Format Income Statement Sales Variable Expenses : Variable Cost of Goods Sold $ 260,000 Variable Selling expenses $ 147,000 Variable administrative Expenses $ 48,000 Contribution Margin Fixed Expenses : Fixed Selling expenses $ 145,000 Fixed administrative Expenses $ 130,000 Net Income $ 455,000 $ 895,000 $ 275,000 $ 620,000

Working Notes: Selling Units = total sales revenue / Selling price Total selling Units = $1,350,000/$450 = 3,000 Variable Cost of Goods sold = Beginning Inventory+Merchandise Purchases -Ending inventory = $65,000+305,000-$110,000 = $260,000 Variable Selling expenses = 3,000*$49 = $147,000 Variable administrative expenses = 3,000*$ 16 = $48,000 3 Contribution Margin per unit s 298 Contribution per surfboard = Contribution Margin / Selling units = $895,000/3,000 = $298.33