Reference no: EM13929407
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,488 each from the manufacturer. Marwick’s Pianos, Inc., sells the pianos to its customers at an average price of $2,900 each. The selling and administrative costs that the company incurs in a typical month are presented below:
|
Costs
|
Cost Formula
|
|
Selling:
|
|
|
Advertising
|
$942 per month
|
|
Sales salaries and commissions
|
$4,799 per month, plus 3% of sales
|
|
Delivery of pianos to customers
|
$60 per piano sold
|
|
Utilities
|
$650 per month
|
|
Depreciation of sales facilities
|
$4,945 per month
|
|
Administrative:
|
|
|
Executive salaries
|
$13,566 per month
|
|
Insurance
|
$685 per month
|
|
Clerical
|
$2,480 per month, plus $36 per piano sold
|
|
Depreciation of office equipment
|
$900 per month
|
During August, Marwick’s Pianos, Inc., sold and delivered 63 pianos.
Required:
1.Prepare an income statement for Marwick’s Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.)
2.Prepare an income statement for Marwick’s Pianos, Inc., for August, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. (A "Net operating loss" should be entered as a negative number.)
|
Projected financial information
: Break-even Analysis- Single Product Whirlpool is considering selling delux refrigerators for residential use. Projected financial information related to this project follows (this is the base case or budget): Selling price $3,000 per unit Variable Co..
|
|
Job cost sheet for this job.
: Compute the unit product cost that would appear on the job cost sheet for this job. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
|
|
Customers and suppliers were conducted in cash
: Prepare the appropriate journal entry for each of the items above (a. through j.). You can assume that all transactions with employees, customers, and suppliers were conducted in cash. (Round your answers to the nearest dollar amount. Omit the "$" si..
|
|
Utilities cost is probably a mixed cost
: The chief administrator has informed her assistant that the utilities cost is probably a mixed cost that will have to be broken down into its variable and fixed cost elements by use of a scattergraph. The assistant feels, however, that if an analysis..
|
|
Traditional format, with costs organized by function
: Prepare an income statement for Marwick’s Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number
|
|
Variable or fixed with respect to number of units produced
: .Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrat..
|
|
A one year contract to supply the case
: Chinese manufacturer has offered a one-year contract to supply the cases at a cost of $4 per unit. If Nantucket Optics accepts the offer, it will be able to reduce variable manufacturing costs by 10%, reduce fixed costs by $1,500, and rent out some f..
|
|
Total variable cost
: or the activity level of 3,200 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume tha..
|
|
A mixed-use activity
: _____ 1. Which of the following is a mixed-use activity that Congress has written detailed rules in an attempt to curb
|