Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirectexpenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.Departmental Income StatementsFor Year Ended December 31AcousticSales$ 103,300Electric$ 83,300Cost of goods soldGross profitExpensesAdvertisingDepreciation-EquipmentSalariesSupplies usedRentUtilitiesTotal expenses45,27547,45058,02535,8504,9954,30010,1208,58020,10017,9001,9501,7307,0856,0003,0052,57047,25541,080Income (loss)$ 10,770$ (5,230)1. Prepare a departmental contribution to overhead report.2. Based on contribution to overhead, should the electric guitar department be eliminated? Required 1Required 2Prepare a departmental contribution to overhead report.Departmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesTotal direct expensesDepartmental contribution to overheadAcousticElectricCombined< Required 1Required 2 >

1) Departmental Contribution to Overhead report is prepared in the explanation field. 2) The…

Answered: Below are departmental income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Required 1 Required 2 Acoustic $ 102,100 44,975 57,125 For Year Ended December 31 Gross profit Direct expenses 15,015 10,100 20,100 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Prepare a departmental contribution to overhead report. 1,960 7,065 2,995 47,235 $ 9,890 Complete this question by entering your answers in the tabs below. Total direct expenses Departmental contribution to overhead Departmental Contribution to Overhead $ Acoustic…
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Departmental Income Statements Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Required 1 Required 2 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? For Year Ended December 31 Direct expenses Acoustic $ 102,200 45,375 56,825 Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Total direct expenses Departmental contribution to overhead 5,065 10,070 19,700 1,950 7,015 2,965 46,765 $ 10,060 $ (4,370) $ Acoustic…
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARSDepartmental Income StatementsFor Year Ended December 31, 2019 Acoustic Electric Sales $ 102,600 $ 84,200 Cost of goods sold 45,375 47,650 Gross profit 57,225 36,550 Operating expenses Advertising expense 5,055 4,280 Depreciation expense—Equipment 10,110 8,500 Salaries expense 19,500 17,800 Supplies expense 1,940 1,760 Rent expense 7,065 6,030 Utilities expense 2,945 2,600 Total operating expenses 46,615 40,970 Net income (loss) $ 10,610 $ (4,420 ) 1. Prepare a departmental contribution report that shows each department’s contribution to overhead.2. Based on contribution…
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering ellminsting its Electric Guitar department because it shows a loss. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Departmental Income Statements Required 1 Required 2 Acoustic $ 183,300 44,875 58,425 For Year Ended December 31 Direct expenses 4,995 10,000 19,00 1,948 7,895 3,835 46,945 $ 11,488 Total direct expenses Departmental contribution to overhead Electric 1. Prepares departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Acousto $ 83,400…
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. For Year Ended December 31 Acoustic Electric Sales $ 102,200 $ 84,000 Cost of goods sold 43,975 47,550 Gross profit 58,225 36,450 Expenses Advertising 4,995 4,290 Depreciation—Equipment 10,100 8,570 Salaries 20,200 17,300 Supplies used 1,990 1,770 Rent 7,035 5,950 Utilities 2,975 2,640 Total expenses 47,295 40,520 Income (loss) $ 10,930 $ (4,070)
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Acoustic Sales $ 102,900 Electric $ 84,000 Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses 44,975 47,550 57,925 36,450 4,985 4,320 10,080 8,540 20,100 17,800 2,010 1,780 7,095 5,950 2,995 2,640 47,265 41,030 Income (loss) $ 10,660 $ (4,580) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 436,000 $ 290,000 $ 726,000 Cost of goods sold 262,000 207,000 469,000 Gross profit 174,000 83,000 257,000 Operating expenses Direct expenses Advertising 17,000 12,000 29,000 Store supplies used 4,000 3,800 7,800 Depreciation—Store equipment 5,000 3,300 8,300 Total direct expenses 26,000 19,100 45,100 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 444,000 $ 281,000 $ 725,000 Cost of goods sold 261,000 210,000 471,000 Gross profit 183,000 71,000 254,000 Operating expenses Direct expenses Advertising 16,500 13,000 29,500 Store supplies used 5,500 4,900 10,400 Depreciation—Store equipment 4,200 2,800 7,000 Total direct expenses 26,200 20,700 46,900 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 444,000 $ 281,000 $ 725,000 Cost of goods sold 261,000 210,000 471,000 Gross profit 183,000 71,000 254,000 Operating expenses Direct expenses Advertising 16,500 13,000 29,500 Store supplies used 5,500 4,900 10,400 Depreciation—Store equipment 4,200 2,800 7,000 Total direct expenses 26,200 20,700 46,900 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. $24,324,000 2,975,000 12,600,000 10,550,000 2,875,000 3,445,000 Annual sales Net income Cost of goods sold Total assets Inventory Receivables The Midwest Outdoor Equipment Corporation has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer's plant and bills only the manufacturer when the manufacturer consumes the raw material. This is expected to reduce total assets by $2 million. What is the expected change in return on assets? Note: Round your answer to 2 decimal places. Expected change in return on assets %
Assume the following information for Fruitful Proprietary Limited. for the year ended December 31, 2011: Sales R5,160 Cost of goods manufactured for the year R1,800 Beginning finished goods inventory R834 Ending finished goods inventory R593 Selling and administrative expenses R424 What is the cost of goods sold for the year ended 31 December 2011?
Required information [The following information applies to the questions displayed below.] Use the following selected account balances of Delray Manufacturing for the year ended December 31. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases. Direct labor Indirect labor Repairs-Factory equipment Rent cost of factory building Selling expenses General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 2,700,000 112,000 146,000 190,000 515,000 618,000. 93,000 74,000 148,000 237,000 379,000 134,000 175,000 228,000 Prepare an income statement for Delray Manufacturing (a manufacturer). Assume that its cost of goods manufactured is $1,397,00

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