Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Loonzain Fragrant 20 % Total Percentage of total sales Sales 48 % $ 369,600 110,880 $ 258,720 32 % 100 % $ 154,000 123, 200 $ 246,400 135,520 $ 770,000 369,600 100 % 100 % 100 % 100 % Variable expenses 30 % 80 % 55 % 48 % Contribution margin 70 % 2$ 30,800 20 % $ 110,880 45 % 400,400 52 % Fixed expenses 232,960 Net operating income $ 167,440 Fixed expenses CM ratio $232,960 0.52 Dollar sales to break-even = $448,000 As shown by these data, net operating income is budgeted at $167,440 for the month and the estimated break-even sales is $448,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data.
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Loonzain Fragrant 20 % Total Percentage of total sales Sales 48 % $ 369,600 110,880 $ 258,720 32 % 100 % $ 154,000 123, 200 $ 246,400 135,520 $ 770,000 369,600 100 % 100 % 100 % 100 % Variable expenses 30 % 80 % 55 % 48 % Contribution margin 70 % 2$ 30,800 20 % $ 110,880 45 % 400,400 52 % Fixed expenses 232,960 Net operating income $ 167,440 Fixed expenses CM ratio $232,960 0.52 Dollar sales to break-even = $448,000 As shown by these data, net operating income is budgeted at $167,440 for the month and the estimated break-even sales is $448,000. Assume that actual sales for the month total $770,000 as planned; however, actual sales by product are: White, $246,400; Fragrant, $308,000; and Loonzain, $215,600. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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