AJ Manufacturing Company incurred $50,500 of fixed product cost and $40,400 of variable product cost during its first year ofoperation. Also during its first year, AJ incurred $16,150 of fixed and $13,100 of variable selling and administrative costs. The companysold all of the units it produced for $162,000.Requireda. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP).b. Prepare an income statement using the contribution margin approach.Complete this question by entering your answers in the tabs below.Required A Required BPrepare an income statement using the format required by generally accepted accounting Principles (GAAP).AJ MANUFACTURING COMPANYIncome Statement< Required ARequired B >

The above answer can be explained as under - The traditional income statement considers both…

Answered: AJ Manufacturing Company incurred…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

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AJ Manufacturing Company incurred $58,000 of fixed product cost and $46,400 of variable product cost during its first year of operation. Also during its first year, AJ incurred $18,400 of fixed and $14,600 of variable selling and administrative costs. The company sold all of the units it produced for $192,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). b. Prepare an income statement using the contribution margin approach. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). AJ MANUFACTURING COMPANY Income Statement Required A Required B >
AJ Manufacturing Company incurred $55,000 of fixed product cost and $44,000 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,500 of fixed and $14,000 of variable selling and administrative costs. The company sold all of the units it produced for $180,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). b. Prepare an income statement using the contribution margin approach.
Direct labour Sales Selling expenses Raw (direct) materials on hand: January 1 December 31 General and administrative expenses Finished goods: January 1 Work-in-process: January 1 December 31 Direct materials purchases Depreciation: factory Indirect labour Indirect materials used Marketing promotions Factory taxes Utilities Courier costs (office) Miscellaneous plant overhead Plant repairs and maintenance Customer service costs Fire insurance: factory equipment Materials handling costs $ 30,000 400,000 50,000 8,000 4,000 18,000 25,000 19,000 18,000 47,000 20,000 3,000 7,000 1,500 11,000 20,000 900 4,000 9,000 3,000 3,000 8,000
Lechon Company provided the following data for the current year: Sales Cost of goods sold Expenses Depreciation Income tax expense The entity has two major reportable segments, A and B. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The remaining expenses and sales are directly allocable to segment activities according to the following percentages: Sales Cost of goods sold Expenses Depreciation P60,000,000 28,000,000 14,000,000 4,000,000 4,000,000 Segment A 40% 35 40 40 Segment B 45% Others 15% 15 20 15 50 40 45 What amount should be reported as net income of Segment A?
The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $18,840 Cost of goods sold $(16,010) Selling, administrative, and other expenses (1,700) Total expenses $(17,710) Operating income $1,130 Assume that $4,140 million of cost of goods sold and $940 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $2,260 Ending inventory $2,640 Also, assume that 40% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Ansara Company. Round numbers to nearest million.
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
All applicable Cases are available with McGraw-Hill’s Connect™Accounting. Cost of goods manufactured, cost of goods sold, and income statement Determine each of the following missing amounts:Firm A Firm B Firm CBeginning raw materials inventory . . . . . . . . . . . . . . . . . $ 17,000 $ ? $ 42,000Purchases of raw materials during the year . . . . . . . . . . ? 96,000 226,000Raw materials available for use . . . . . . . . . . . . . . . . . . . ? 119,000 ?Ending raw materials inventory . . . . . . . . . . . . . . . . . . . 12,000 ? 51,000Cost of raw materials used . . . . . . . . . . . . . . . . . . . . . . 90,000 101,000 ?Direct labor costs incurred. . . . . . . . . . . . . . . . . . . . . . . 130,000 ? 318,000Variable manufacturing overhead applied. . . . . . . . . . . . ? 34,000 72,000Fixed manufacturing overhead applied. . . . . . . . . . . . . . 100,000 60,000 ?Total manufacturing costs incurred . . . . . . . . . . . . . . . . 370,000 ? ?Beginning work in process. . . . . . . . .…
Given: The Company showed Cost of Goods Sold amounting to P645,750 and its gross profit rate is 40%. The total expenses was P559,400. Required: What is the net profit or net loss of the company. Select the correct response:
[The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 156,000 Income Tax Expense Net Sales 15, 120 253,890 18,100 36,600 Office Expense Salaries and Wages Expense Required: 1. Prepare a multistep income statement for external reporting purposes. MYSTERY INCORPORATED Income Statement ---
The following information relates to Marshall Manufacturing's current accounting period: Raw materials used $ 16,400 Direct labor wages 32,400 Sales salaries and commissions 24,400 2,940 Depreciation on production equipment Rent on manufacturing facilities 3,940 Administrative supplies and utilities 4,400 Sales revenue 99,000 Units produced 3,400 Units sold 3,400 Based on this information, what is the company's net income? (Do not round intermediate calculations.) Multiple Choice $14,520 $32,120 $17,460 $14,940
Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 20Y2, are as follows: cost of goods sold, $6,100,000; administrative expenses, $740,000; interest expense, $25,000; rent revenue, $60,000; sales, $9,332,500; and selling expenses, $1,250,000. Prepare a single-step income statement.
abled: MGMT8500-Midterm Exam - Wednes... i The Central Valley Company is a manufacturing firm that produces and sells a single product. The company's revenues and expenses for the last four months are given below. Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense Total operating expenses Net income Central Valley Company Comparative Monthly Income Statements March COGS Shipping Salaries and commissions Y Y Y 5,900 $755,200 386,400 368,800 = 68,800 79,000 174,100 9,900 + April + May 6,150 $691,200 $787,200 359,400 394,900 331,800 392,300 + 5,400 71,800 79,000 174,800 9,900 48,000 48,000 379,800 383,500 $(11,000) $(26,700) $8,800 Saved 64,300 79,000 157,300 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. 9,900…

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