Variable Costing Ferguson Company has the following information for July: Sales $630,000 Variable cost of goods...

Variable Costing

Ferguson Company has the following information for July:

Sales	$630,000
Variable cost of goods sold	289,800
Fixed manufacturing costs	94,500
Variable selling and administrative expenses	69,300
Fixed selling and administrative expenses	37,800

Determine the following for Ferguson Company for the month of July:

a. Manufacturing margin	$
b. Contribution margin	$
c. Income from operations	$

Expert Solution

Part (a)	Manufacturing margin

	Sales		630,000
	Less : Cost of goods sold
	Variable cost of goods sold	289,800
	Fixed manufacturing costs	94,500
	Variable selling and administrative expenses	69,300
	Fixed selling and administrative expenses	37,800	491,400

	Manufacturing margin		138,600

Part (b)	Contribution margin

	Sales		630,000
	Less : Variable cost
	Variable cost of goods sold	289,800
	Variable selling and administrative expenses	69,300	359,100

	Contribution margin		270,900

Part (c)	Income from operations is equal to Manufacturing margin i.e. $138,600 since there is no further data.

ekkarill92 answered 3 years ago

Ferguson Company has the following information for March: Sales $600,000 Variable cost of goods sold 276,000...

Ferguson Company has the following information for March: Sales $600,000 Variable cost of goods sold 276,000 Fixed manufacturing costs 90,000 Variable selling and administrative expenses 54,000 Fixed selling and administrative expenses 36,000 Determine the following for Ferguson Company for the month of March: a. Manufacturing margin $ b. Contribution margin $ c. Income from operations $

Variable Costing Leone Company has the following information for February: Sales $600,000 Variable cost of goods...

Variable Costing Leone Company has the following information for February: Sales $600,000 Variable cost of goods sold 288,000 Fixed manufacturing costs 90,000 Variable selling and administrative expenses 60,000 Fixed selling and administrative expenses 36,000 Determine the following for Leone Company for the month of February: a. Manufacturing margin $ b. Contribution margin $ c. Operating income $

Philadelphia Company has the following information for March: Sales $455,000 Variable cost of goods sold 240,000...

Philadelphia Company has the following information for March: Sales $455,000 Variable cost of goods sold 240,000 Fixed manufacturing costs 70,000 Variable selling and administrative expenses 52,000 Fixed selling and administrating expenses 35,000 For credit, show all your work Determine the: (a) manufacturing margin (b) contribution margin (c) income from operations for Philadelphia Company.

April May June July Sales 600,000 900,000 500,000 400,000 Cost of Goods sold 420,000 630,000 350,000...

April May June July Sales 600,000 900,000 500,000 400,000 Cost of Goods sold 420,000 630,000 350,000 280,000 Gross Margin 180,000 270,000 150,000 120,000 Selling and admin expenses selling expense 79,000 120,000 62,000 51,000 administrative 45,000 52,000 41,000 38,000 total selling and administrative expenses 124,000 172,000 103,000 89,000 net operating income 56,000 98,000 47,000 31,000 a. sales are 20% for cash and 80% on account b. sales on account are collected over a three month period with 10% collected in the...

Sales = $630,000, cost of goods sold = $480,000, depreciation = $43,000, interest paid = $62,000,...

Sales = $630,000, cost of goods sold = $480,000, depreciation = $43,000, interest paid = $62,000, tax rate = 35%. 1) What is net income? 2) If the company paid out $15,000 in dividends, what is the addition to retained earnings? 3) If the company has 25,000 shares of common stock outstanding, what are the earnings per share? 4) What is the dividend per share?

The Walters Company has the following information related to Product T: Sales $86,100,000 Cost of Goods...

The Walters Company has the following information related to Product T: Sales $86,100,000 Cost of Goods Sold 64,900,000 Gross Profit $21,200,000 General, Selling & Administrative 18,000,000 Income from Operations $3,200,000 Assume the Cost of Goods Sold is 25% fixed. Assume the General, Selling, and Administrative is 85% fixed. What is the total Contribution Margin and what is the Contribution Margin Ratio? If Sales increase by $100,000, what will be the increase in Income from Operations? If the information above is...

Cost of Goods Sold, Cost of Goods Manufactured Gauntlet Company has the following information for January:...

Cost of Goods Sold, Cost of Goods Manufactured Gauntlet Company has the following information for January: Cost of direct materials used in production $ 37,000 Direct labor 46,000 Factory overhead 20,000 Work in process inventory, January 1 22,000 Work in process inventory, January 31 30,000 Finished goods inventory, January 1 24,000 Finished goods inventory, January 31 18,000 a. For January, determine the cost of goods manufactured. $ b. For January, determine the cost of goods sold. $

Cost of Goods Sold, Cost of Goods Manufactured Glenville Company has the following information for April:...

Cost of Goods Sold, Cost of Goods Manufactured Glenville Company has the following information for April: Cost of direct materials used in production $54,000 Direct labor 66,000 Factory overhead 20,000 Work in process inventory, April 1 45,000 Work in process inventory, April 30 50,000 Finished goods inventory, April 1 25,000 Finished goods inventory, April 30 17,000 a. For April, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured. Glenville Company Statement...

The following information relates to Kelly Company for 2021. Sales --> 1,845,000 Cost of Goods Sold...

The following information relates to Kelly Company for 2021. Sales --> 1,845,000 Cost of Goods Sold --> 1,160,000 Operations expenses & Income taxes --> 365,000 Depreciation of plant assets --> 215,000 Amortization of intangible assets --> 50,000 Increase of Accounts Receivable --> 38,000 Decrease in inventory --> 62,000 Decrease in Accounts Payable --> 30,000 Increase in accrued liabilities --> 8,000 Calculate the 2021 net cash flow from operating activities using the indirect method.You must show your work for full credit.

1. Determine the following information using absorption costing and variable costing: Absorption costing a. Manufacturing cost...

1. Determine the following information using absorption costing and variable costing: Absorption costing a. Manufacturing cost _______________ b. Per-unit cost _______________ c. Cost of ending inventory _______________ Variable costing a. Manufacturing cost _______________ b. Per-unit cost _______________ c. Cost of ending inventory _______________ Basic facts: Direct materials $1,000 Direct labor $2,000 Variable overhead $1,500 Fixed overhead $1,000 Units produced 100 Units sold 80 No beginning inventory 2. What is the prime cost per unit and conversion cost per unit: a....

Question