Question

Fanelli Corporation, a merchandising company, reported the following results for July Number of units sold Selling price per unit Unit cost of goods sold Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense 5,900 $ 600 $ 411 $ 68 $125,400 $ 24 $207,300 points (8 02:59:21 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format Income statement for July. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional format income statement for July. Fanelli Corporation For the month of July Traditional Income Statement e Statement Selling and administrative expenses: Required A Required B >

Answer 1

3540000 2424900 1115100 Fanelli Corporation Traditional Income Statement sales Revneue (5900*600) 4 Cost of Goods Sold (5900*411) Gross Margin selling and Administrative Expenses Selling Expenses (125400+(68*5900) Administrative Expenses (207300+(5900*24) Total Selling and Administrative Expenses Net operating income 526600 348900 875500 239600 3540000 Fanelli Corporation Contribution Formate Income Statement sales Revneue (5900*600) Varaible Expenses Cost of Goods Sold (5900*411) 2424900 Selling Expenses 4012001 Administrative Expenses 141600 Total Variable Expenses Contribution Margin Fixed Expenses Selling Expenses 125400 Administrative Expenses 207300 Total Fixed Cost Net operating Income 2967700 572300 332700 239600