The contribution format income statement of Goma Corporation follows: Goma Corporation Income Statement For the Quarter Ended March 31 Sales (28,000 units). Variable expenses: Variable cost of goods sold... Variable selling and administrative . Contribution margin . Fixed expenses: Fixed manufacturing overhead... Fixed selling and administrative .. Net operating loss....... During the period, the company had no beginning inventory but had ending inventory valued at P33,000 using the variable costing approach. P1,120,000 P 462,000 168,000 630,000 490,000 P 300,000 200,000 500,000 P (10,000) ....

The contribution format income statement of Goma Corporation follows: Goma Corporation Income Statement For the Quarter Ended March 31 Sales (28,000 units). Variable expenses: Variable cost of goods sold... Variable selling and administrative . Contribution margin . Fixed expenses: Fixed manufacturing overhead... Fixed selling and administrative .. Net operating loss....... During the period, the company had no beginning inventory but had ending inventory valued at P33,000 using the variable costing approach. P1,120,000 P 462,000 168,000 630,000 490,000 P 300,000 200,000 500,000 P (10,000) ....

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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The annual data that follows pertain to See It, a manufacturer of swimming goggles (the company had no beginning inventory): Sales price. . . . . . . . . . . . . . . . . . . . . . . . . $49 Variable manufacturing expense per unit. . $17 Sales commission expense per unit. . . . . . $9 Fixed manufacturing overhead. . . . . . . . . . $1,980,000 Fixed operating expenses. . . . . . . . . . . . . . $245,000 Number of goggles produced. . . . . . . . . . . 220,000 Number of goggles sold. . . . . . . . . . . . . . . 200,000 Requirements: 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for See It for the year. 2. Which statement shows the higher operating income? Why? 3. The company marketing vice president believes a new sales promotion that costs $150,000 would increase sales to 220,000 goggles. Should the company…
Presented here is the income statement for Big Sky Incorporated for the month of February: Sales $ 60,000 Cost of goods sold 51,900 Gross profit $ 8, 100 Operating expenses 15,200 Operating loss $ (7,100) Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 19%. Required: Rearrange the preceding income statement to the contribution margin format. If sales increase by 10%, what will be the firm's operating income (or loss)? Calculate the amount of revenue required for Big Sky to break even.
Wright & Boyle Inc. had the following income statement for the month of May: Sales revenue $470,800.00 Cost of goods sold 217,766.40 Gross margin $253,033.60 Less: Selling expenses 86,199.20 Administrative expenses 74,942.80 Operating income $91,891.60 What was the selling expense percent?
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The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 What is the markup percentage on total cost? (Round answer to 0 decimal places, e.g. 45%.) Markup percentage enter markup percentage rounded to 0 decimal places %
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The level of inventory of a manufactured product has increased by 7,871 units during a period. The following data are also available: Variable Fixed $12.00 $7.00 1.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if variable costing is used rather than absorption costing would be a(n) a. $55,097 increase Ob. $55,097 decrease Oc. $86,581 increase Od. $86,581 decrease