The accounting department of Archer Company, a merchandising company, has prepared the following analysis: Cost Cost Formula Cost of goods sold $56 per unit Sales commissions 12% of sales Advertising expense $300,000 per month Administrative sa
The accounting department of Archer Company, a merchandising company, has prepared the following analysis: The accounting department feels that billing expense is a mixed cost, containing both fixed and variable cost elements. The billing expenses and sales in units over the last several months follow: The accounting department now plans to develop a cost formula for billing expense so that a contribution format income statement can be prepared for management's use. Required: a. Using the least-squares method, estimate the cost formula for billing expense. Round off both the fixed cost and the variable cost per thousand units sold to the nearest whole dollar. b. Assume that the company plans to sell 30,000 units during July at a selling price of $100 per unit. Prepare a budgeted income statement for the month, using the contribution format.
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The accounting department of Archer Company, a merchandising company, has prepared the following analysis: Cost Cost Formula Cost of goods sold $56 per unit Sales commissions 12% of sales Advertising expense $300,000 per month Administrative sa
The accounting department of Archer Company, a merchandising company, has prepared the following analysis: Cost Cost Formula Cost of goods sold $56 per unit Sales commissions 12% of sales Advertising expense $300,000 per month Administrative sa
The accounting department of Archer Company, a merchandising company, has prepared the following analysis:CostCost FormulaCost of goods sold$56 per unitSales commissions12% of salesAdvertising expense$300,000 per monthAdministrative salaries$160,000 per monthBilling expense?Depreciation expense$62,000 per monthThe accounting department feels that billing expense is a mixed cost, containing both fixed and variable cost elements. The billing expenses and sales in units over the last several months follow:Units SoldBilling(thousands)ExpenseJanuary9$30,000February11$33,000March14$36,000April17$42,000May15$39,000June12$35,000The accounting department now plans to develop a cost formula for billing expense so that a contribution...
Fanlo Corporation, a merchandising company, reported the following results for July: Cost of goods sold is...
Fanlo Corporation, a merchandising company, reported the
following results for July:
Cost of goods sold is a variable cost in this company.
a) Prepare a tradtional format income statement for July
b) Prepare a contribution format income statement for
July
*Fanelli
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...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 20,000 $30 $4 $2 $40,000 $30,000 $24,000 $44,000 $180,000 2. Prepare a contribution format income statement Cherokee, Inc. Contribution Format Income Statement Sales. Variable expenses: Cost of goods sold. Selling expense Administrative expenses Fixed expenses: Selling expenses Administrative expenses... Net operating income ....
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,700...
Fanelli Corporation, a merchandising company, reported the
following results for July:
Number of units sold
5,700
Selling price per unit
$
600
Unit cost of goods sold
$
409
Variable selling expense per unit
$
64
Total fixed selling expense
$
125,200
Variable administrative expense per unit
$
20
Total fixed administrative expense
$
207,100
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...
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold Selling...
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 0 0 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...
Fanelli Corporation, a merchandising company, reported the following results for July Number of units sold Selling...
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 5,800 $ 590 410 66 $125,300 22 $207,200 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...
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,800...
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,800 Selling price per unit $ 590 Unit cost of goods sold $ 410 Variable selling expense per unit $ 66 Total fixed selling expense $ 125,300 Variable administrative expense per unit $ 22 Total fixed administrative expense $ 207,200 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...
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,200...
Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,200 Selling price per unit $ 600 Unit cost of goods sold $ 404 Variable selling expense per unit $ 54 Total fixed selling expense $ 124,700 Variable administrative expense per unit $ 24 Total fixed administrative expense $ 206,600 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...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 11,000 17 1 3 $ 21,000 $ 15,000 $ 8,000 $ 25,000 $ 86,000 points Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1...
Fanelli Corporation, a merchandising company, reported the following results for July Number of units sold Selling...
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...
Fanlo Corporation, a merchandising company, reported the
following results for July:
Cost of goods sold is a variable cost in this company.
a) Prepare a tradtional format income statement for July
b) Prepare a contribution format income statement for
July
*Fanelli
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...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 20,000 $30 $4 $2 $40,000 $30,000 $24,000 $44,000 $180,000 2. Prepare a contribution format income statement Cherokee, Inc. Contribution Format Income Statement Sales. Variable expenses: Cost of goods sold. Selling expense Administrative expenses Fixed expenses: Selling expenses Administrative expenses... Net operating income ....
Fanelli Corporation, a merchandising company, reported the
following results for July:
Number of units sold
5,700
Selling price per unit
$
600
Unit cost of goods sold
$
409
Variable selling expense per unit
$
64
Total fixed selling expense
$
125,200
Variable administrative expense per unit
$
20
Total fixed administrative expense
$
207,100
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...
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 0 0 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...
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 5,800 $ 590 410 66 $125,300 22 $207,200 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...
Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases 11,000 17 1 3 $ 21,000 $ 15,000 $ 8,000 $ 25,000 $ 86,000 points Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1...
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...
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