Question

The Sundae Ice Cream Shoppe sold 9500 servings of ice cream during June for $2 per...

The Sundae

Ice Cream Shoppe sold 9500 servings of ice cream during June for $2 per serving. The shop purchases the ice cream in large tubs from the Georgia Ice Cream Company. Each tub costs the shop $7 and has enough ice cream to fill 20 ice cream cones. The shop purchases the ice cream cones for$ 0.25 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $1,650 per month. The shop expenses $260

a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional$2,800of other operating expenses (75% of these were fixed costs).

Requirements

1.

Prepare TheSundaeIce Cream Shoppe's June income statement using a traditional format.

2.

Prepare TheSundae Ice Cream Shoppe's June income statement using a contribution margin format.

Homework Answers

Answer #1
1 Traditional method Amount
Sales revenue 9500*2 19000
Cost of goods sold
Tubs 9500/20 = 475 *7 3325
Cones cost 9500*.25 2375
Total cost of goods sold 5700
Gross profit 13300
Operating cost
Rent expense 1650
Shop expense 260
Other operaing expense 2800
Total operating expense 4710
Net operating income 8590
2 Contribution method Amount
Sales revenue 9500*2 19000
Variable cost
Tubs 9500/20 = 475 *7 3325
Cones cost 9500*.25 2375
Other operating expense 25% variable 700
Total variable expense 6400
Contribution margin 12600
Fixed cost
Shop rent 1650
Shop expense 260
Other operating expense 75% 2100
Total fixed expense 4010
Net operating income 8590
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Old Fashioned Ice Cream Shoppe sold 8,800 servings of ice cream during June for $...
The Old Fashioned Ice Cream Shoppe sold 8,800 servings of ice cream during June for $ 4 per serving. The shop purchases the ice cream in large tubs from the Georgia Ice Cream Company. Each tub costs the shop $ 14 and has enough ice cream to fill 28 ice cream cones. The shop purchases the ice cream cones for $ 0.10 each from a local warehouse club. Located in an outdoor? mall, the rent for the shop space is...
The Fantastic Ice Cream Shoppe sold 8,700 servings of ice cream during June for $3 per...
The Fantastic Ice Cream Shoppe sold 8,700 servings of ice cream during June for $3 per serving. The shop purchases the ice cream in large tubs from the Golden Ice Cream Company. Each tub costs the shop $15 and has enough ice cream to fill 30 ice cream cones. The shop purchases the ice cream cones for $0.25 each from a local warehouse club. Located in an outdoor? mall, the rent for the shop space is $1,600 per month. The...
The Yummy Ice Cream Shoppe sold 9,400 servings of ice cream during June for $4 per...
The Yummy Ice Cream Shoppe sold 9,400 servings of ice cream during June for $4 per serving. The shop purchases the ice cream in large tubs from the Golden Ice Cream Company. Each tub costs the shop $15 and has enough ice cream to fill 30 ice cream cones. The shop purchases the ice cream cones for $0.05 each from a local warehouse club. Located in an outdoor​ mall, the rent for the shop space is $1,800 per month. The...
Cost of Goods Sold Slapshot Company makes ice hockey sticks. During the month of June, 1,900...
Cost of Goods Sold Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $513,000. Suppose that on June 1, Slapshot had 660 units in finished goods inventory costing $160,000 and on June 30, 930 units in finished goods inventory costing $215,000. 1. Prepare a cost of goods sold statement for the month of June. Slapshot Company Cost of Goods Sold Statement For the Month of June Cost...
Shadee Corp. expects to sell 530 sun visors in May and 380 in June. Each visor...
Shadee Corp. expects to sell 530 sun visors in May and 380 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 70 units. It expects the following unit sales for the third quarter:       July 530 August 490 September 430 Sixty percent of Shadee’s sales are cash. Of the credit sales, 52 percent is collected in the month of the...