Question

Hi sir/ma'am. May I humbly ask you to help me with this particular accounting question? Thank you!

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount $ 1,230,000 410 ਈ ਈ ਈ 46 16 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 145,000 115,000 65,000 115,000 290,000 ਦੀ 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses:

Answer 1

Requirement 1 Requirement 2 Alpine House Inc. Traditional Income Statement Alpine House Inc. Contribution Format Income Statement $ 1,230,000.00 $1,230,000.00 $ 240,000.00 $ 990,000.00 Sales Cost of goods sold Gross Margin Selling and administrative expenses Selling expense Administrative expense Sales Variable expense : Cost of goods sold Selling expense Administrative expense $ 240,000.00 $ 138,000.00 $ 48,000.00 $ 283,000.00 $ 163,000.00 $ 426,000.00 $ 804,000.00 $ 446,000.00 $ 544,000.00 Net Operating Income Contribution Margin Fixed expense : Selling expense Administrative expense $ 145,000.00 $ 115,000.00 Workings : 1) Cost of Goods sold Beginning Merchandise inventory Add : Purchases Less : Closing Merchandise inventory $ 260,000.00 $ 544,000.00 Net Operating Income $ $ $ 65,000.00 290,000.00 (115,000.00) $ 240,000.00 Requirement 3 Contribution mArgin per unit = $804000/3000 units $ 268.00 2) Selling Expense : No of units sold = Sales / selling price 3000.00 Units Variable selling expense : 3000*46 Fixed Selling expense $ 138,000.00 $ 145,000.00 $ 283,000.00 3) Administrative Expense : Variable admin expense : 3000*16 Fixed admin expense 3+16 150.00 $ 48,000.00 $ 115,000.00 $ 163,000.00