Assume the following information for a merchandising company:
Number of units sold 20,000 Selling price per...
Assume the following information for a merchandising company:
Number of units sold 20,000 Selling price per unit $ 30 Variable
selling expense per unit $ 3.6 Variable administrative expense per
unit $ 3.1 Fixed administrative expenses $ 50,000 Beginning
merchandise inventory $ 24,000 Ending merchandise inventory $
19,000 Merchandise purchases $ 340,000 What is the contribution
margin?
Alpha Company provided the following data concerning its
income statement: sales, $1,000,000; purchases, $497,000; beginning
inventory,...
Alpha Company provided the following data concerning its
income statement: sales, $1,000,000; purchases, $497,000; beginning
inventory, $225,000; ending inventory, $257,000; operating
expenses, $90,000; freight-in, $5,000; sales discounts, $15,000;
purchases discounts, $15,000; sales returns & allowances,
$86,000; and purchases returns & allowances, $41,000. The data
are complete and provide the basis for preparation of an income
statement. How much is net income?
Wilson shows the following inventory activity (in
chronological order). The company uses the net price
method...
Wilson shows the following inventory activity (in
chronological order). The company uses the net price
method for purchases, but the amounts shown below are the
gross prices. All purchases are made with terms of 2/10, n/30. The
selling price per unit is $7. Other operating expenses are $20 and
the tax rate is 30 percent.
Activity Number of
Units Gross Purchase
Price
Beginning balance 11 $4
Sale 6
Purchase 9 $4.50
Sale 3
Sale 7
Purchase 5 $5.00
Sale 3...
A company sells 1,200 units during the first quarter of the year
at a selling price...
A company sells 1,200 units during the first quarter of the year
at a selling price of $25 per unit. In addition, the
company has a beginning inventory of 600 units that were purchased
at $10 per unit, and the following purchases and sales.
Date Units sold Units purchased Cost per unit
January 10 300
$11
January 25 450
February 7 400 $12
February 14 200
March 5 300 $14
March 27 550
If the company uses...
Pu4-G18 Company uses the weighted average inventory costing
method. The company had a beginning inventory of...
Pu4-G18 Company uses the weighted average inventory costing
method. The company had a beginning inventory of 1,000 units
that cost $18.60 each. Purchases were made throughout the
year as follows:
April: 2,100 units purchased at $11.40 per unit
September: 1,800 units purchased at $7.25 per unit
November: 1,100 units purchased at $14.10 per unit
During the year, 4,300 units were sold to customers at a
selling price of $26.00 each.
Calculate the dollar amount of ending inventory shown on
Pu4-G18...
Peterson Company began business in 1980 when the general price
index was 80. At that time,...
Peterson Company began business in 1980 when the general price
index was 80. At that time, the company acquired all of its plant
assets. Sales, purchases, and operating expenses occur evenly
throughout a year. At the end of 2006, Peterson’s comparative
balance sheets in Swiss francs showed: December 31 2005 2006
Monetary assets Fr. 300,000 Fr. 325,000 Monetary liabilities
320,000 315,000 Other assets 240,000 300,000 Other liabilities
80,000 115,000 Other data for 2006: Sales 270,000 Beginning
inventory (FIFO basis) 70,000...
Gargiulo Company, a 90% owned subsidiary of Posito Corporation,
sells inventory to Posito at a 25%...
Gargiulo Company, a 90% owned subsidiary of Posito Corporation,
sells inventory to Posito at a 25% profit on selling price. The
following data are available pertaining to intra-entity purchases.
Gargiulo was acquired on January 1, 2012. Assume the equity method
is used. The following data are available pertaining to Gargiulo's
income and dividends.
2012 2013 2014
Purchases by Posito $8,000 $12,000
$15,000
Ending inventory on Posito's books $1,200 $4,000
$3,000
Gargiulo's net...
The Rhythm Shop is a large retailer of acoustic, electric, and
bass guitars. An income statement...
The Rhythm Shop is a large retailer of acoustic, electric, and
bass guitars. An income statement for the company’s acoustic guitar
department for a recent quarter is presented below:
THE RHYTHM SHOP
Income Statement—Acoustic Guitar Department
For the Quarter Ended March 31
Sales
$
2,250,000
Cost of goods sold
1,000,000
Gross margin
1,250,000
Selling and administrative expenses:
Selling expenses
$
450,000
Administrative expenses
250,000
700,000
Operating income
$
550,000
The guitars sell, on average, for $900 each. The department’s
variable...