Question

In: Accounting

Financial Statement

Prepare financial statements and the required information as asked from the Statements.

 

Solutions

Expert Solution

Income Statement
Sales
 
$330,000
Less:
 
 
Inventory Consumed
$231,000
 
Variable Selling Expense
$16,500
 
Variable Administrative Expense (b/f)
$16,500
$264,000
Contribution Margin
 
$66,000
Less:
 
 
Fixed Admin Expenses
$13,200
 
Fixed Selling Expenses (b/f)
$33,800
$47,000
Net Operating Income
 
$19,000
Inventory Consumed = 22000 + 220000 - 11000 = $ 231,000
 
 
Traditional Income Statement
Revenue:
 
Sales
$330,000
Less: Expenses
 
COGS
-$231,000
Variable Selling Expense
-$16,500
Variable Admin Exp
-$16,500
Fixed Admin Exp
-$13,200
Fixed Selling Exp
-$33,800
Net Operating Income
$19,000
Selling Price per unit = $ 330,000 / 1000 units = $ 330/unit
Variable Cost per unit = ( 231000 + 16500 + 16500 ) / 1000 units = $ 264/unit
Contribution per unit = $ 66,000 / 1000 = $ 66/unit
 
The contribution format income statement will be more useful for managers in estimating how net operating income will change in response to changes in unit sales

All the requirements have been answered.

Soumik Mallick Choudhury answered 3 years ago
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