Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $2,500 each. The average cost of an organ from the manufacturer is $1,500.
House of Organs, Inc., has always kept careful records of its costs. The costs that the company incurs in a typical month are presented below in the form of a spreadsheet:
Costs
Cost Formula
Selling:
Advertising
$950 per month
Delivery of Organs
$60 per organ sold
Sales Salaries and Commissions
$4,800 per month, plus 4% of sales
Utilities
$650 per month
Depreciation of Sales Facilities
$5,000 per month
Administrative:
Executive Salaries
$13,500 per month
Depreciation of Office Equipment
$900 per month
Clerical
$2,500 per month, plus $40 per organ sold
Insurance
$700 per month
During November, the company sold and delivered 60 organs.
Required:
1. Prepare an income statement for November using the traditional format with costs organized by function.
2. Redo (1) above, this time using the contribution margin format with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through CM.
3. Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis?
Total liabilities and stockholders' equity $3,640,500 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,786,200.
A company’s inventory records report the following: On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?
What is the number of units of each product that must be sold for Hog town to achieve its breakeven point:Break-even point units
on january 1 2009 clintwood corporation issued a 1000 ten-year 10 bond payable interest payable each december 31. for
Illustrate who discovered the fraud? Did external auditors discover or fail to discover the fraud? Were external auditors implicated in the fraud?
A credit balance in the Manufacturing Overhead account at the end of an interim month means that: The balance should be reported as a prepaid expense in the monthly balance sheet. The formula for computing a predetermined overhead rate is: A producti..
Comparing actual results to a budget based on the actual activity for the period is possible with the use of a:
Prepare a contribution format income statement segmented by divisions, as desired by the president.
Determine the balance in the Cash account on January 31. Be certain to state whether the balance is debit or credit.
Direct labour is paid at a rate of RM8 per hour. Production overheads are absorbed at a rate of RM40 per direct labour hour and non-production overheads are absorbed at a rate of 150% of prime cost. What is the total cost of job number 607?
Audit Procedures for fraud detection in the revenue process. Assume that you have been assigned to the audit of Itakian Home Stores., which sells Italian furniture and home furnishings in two retail shops and on a website for online sales. Describe t..
Suppose Mirror’s operating activities provided, rather than used, cash. Identify three things under the indirect method that could cause operating cash flows to be positive.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd