Question
In: Accounting
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,505 per...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $3,000 each. The company’s selling and administrative costs for a typical month are presented below:
| Costs | Cost Formula | |
| Selling: | ||
| Advertising | $ | 962 per month |
| Sales salaries and commissions | $ | 4,785 per month, plus 4% of sales |
| Delivery of pianos to customers | $ | 61 per piano sold |
| Utilities | $ | 660 per month |
| Depreciation of sales facilities | $ | 5,001 per month |
| Administrative: | ||
| Executive salaries | $ | 13,511 per month |
| Insurance | $ | 682 per month |
| Clerical | $ | 2,467 per month, plus $41 per piano sold |
| Depreciation of office equipment | $ | 928 per month |
During August, Marwick’s Pianos, Inc., sold and delivered 58 pianos.
Required:
1. Prepare a traditional format income statement for
August.
2. Prepare a contribution format income statement for August. Show
costs and revenues on both a total and a per unit basis down
through contribution margin.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,505 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,505 per unit and then sells
them to retail customers for an average price of $3,000 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
962 per month
Sales salaries and commissions
$
4,785 per month, plus 4% of sales
Delivery of pianos to customers
$
61 per piano sold
Utilities
$
660 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,510 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,510 per unit and then sells
them to retail customers for an average price of $2,600 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
937 per month
Sales salaries and
commissions
$
4,819 per month, plus 5% of
sales
Delivery of pianos to
customers
$
62 per piano sold
Utilities
$
669 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,493 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,493 per unit and then sells
them to retail customers for an average price of $2,100 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
946 per month
Sales salaries and commissions
$
4,820 per month, plus 5% of sales
Delivery of pianos to customers
$
58 per piano sold
Utilities
$
644 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,516 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,516 per unit and then sells
them to retail customers for an average price of $2,500 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
943 per month
Sales salaries and commissions
$
4,787 per month, plus 5% of sales
Delivery of pianos to customers
$
62 per piano sold
Utilities
$
646 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,488 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,488 per unit and then sells
them to retail customers for an average price of $2,200 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
953 per month
Sales salaries and
commissions
$
4,795 per month, plus 6% of
sales
Delivery of pianos to
customers
$
62 per piano sold
Utilities
$
645 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,501 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,501 per unit and then sells
them to retail customers for an average price of $2,700 each. The
company’s selling and administrative costs for a typical month are
presented below: Costs Cost Formula Selling: Advertising $ 941 per
month Sales salaries and commissions $ 4,797 per month, plus 5% of
sales Delivery of pianos to customers $ 58 per piano sold Utilities
$ 643 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,492 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,492 per unit and then sells
them to retail customers for an average price of $2,500 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
935 per month
Sales salaries and commissions
$
4,808 per month, plus 5% of sales
Delivery of pianos to customers
$
57 per piano sold
Utilities
$
647 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,511 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,511 per unit and then sells
them to retail customers for an average price of $2,300 each. The
company’s selling and administrative costs for a typical month are
presented below: Costs Cost Formula Selling: Advertising $ 937 per
month Sales salaries and commissions $ 4,787 per month, plus 4% of
sales Delivery of pianos to customers $ 62 per piano sold Utilities
$ 666 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,517 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,517 per unit and then sells
them to retail customers for an average price of $3,200 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
962 per month
Sales salaries and commissions
$
4,785 per month, plus 5% of sales
Delivery of pianos to customers
$
57 per piano sold
Utilities
$
657 per month...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,513 per...
Marwick’s Pianos, Inc., purchases pianos from a large
manufacturer for an average cost of $1,513 per unit and then sells
them to retail customers for an average price of $2,200 each. The
company’s selling and administrative costs for a typical month are
presented below:
Costs
Cost Formula
Selling:
Advertising
$
962 per
month
Sales salaries
and commissions
$
4,830 per month,
plus 5% of sales
Delivery of
pianos to customers
$
62 per piano
sold
Utilities
$
662 per
month...
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