Question

In: Accounting

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	$

Expert Solution

Leone sales is $600,000

$36,000 is the fixed selling and administrative expenses of Leone

Leone variable selling and administrative cost is $60,000

Variable portion of cost of goods sold of Leone is $288,000

Fixed manufacturing costs is $90,000 incurred

a Calculation of Leone manufacturing margin

Particulars	$
Sales	600,000
Less fixed manufacturing costs	90,000
Less Variable cost of goods sold	288,000
Manufacturing margin	222,000

$222,000 is the manufacturing margin of Leone Company

b computation of contribution margin of Leone company

Particulars	$
Sales	600,000
Less variable portion of cost of goods sold	288,000
Less variable selling and administrative expenses	60,000
Contribution margin of Leone	252,000

Leone company contribution margin is $252,000

3 Calculation of Leone company operating income

Particulars	$
Sales	600,000
Less variable selling and administrative expenses	60,000
Less fixed manufacturing cost	90,000
Less variable cost of goods sold	288,000
Less fixed selling and administrative expenses	36,000
Operating income	126,000

$126,000 is the operating income of Leone company

$222,000 is manufacturing margin, $252,000 is the operating margin and $126,000 operating income of Leone company. Manufacturing margin ($222,000) is also know as gross margin.

If YOU are like the answer please upvote.

ekkarill92 answered 1 year 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 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 $

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.

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.

. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment...

. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute gross profit realized in 2018? a. $100,000. b. $200,000. c. $300,000. d. $150,000.

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....

The following company has sales of $30 million and a cost of goods sold of $18...

The following company has sales of $30 million and a cost of goods sold of $18 million. The balance sheet for period ending 31 December 2018 for this company appears below Assets $000 Liabilities and Shareholder Equity $000 Cash 2500 Accounts Payable 1600 Accounts Receivable 4400 Other Payables 900 Inventory 1500 Accruals 1100 Total Current Assets 8400 Total Current Liabilities 3600 Property Plant and Equipment 10500 Long Term Debt 2500 Total Assets 18900 Total Liabilities 6100 Issued Equity 12800 Total...