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?
Do you agree with the current practice of testing Goodwill for impairment or would you prefer the previous practice of amortizing Goodwill over 40 years? Defend your position.
Information on Pioneer Automotive Inc’s direct material costs for September follows: Actual quantity of direct materials purchased and used: 30,000 pounds Actual cost of direct materials: $84,000 Unfavorable direct materials quantity variance: $3,000..
Thomas Jefferson, an audit partner with your firm, has selected you to prepare a memo regarding the acceptance of ABC as an audit client. The audit will, if accepted, occur during the firm's slow season when there is excess employee capacity
Latest financial statement to compute operating leverage, ROI, EVA and another performance measure of choice for your company.
Denver Company is considering the purchase of equipment that would cost $40,000 and offer annual cash of $ 10,500 over its useful life of 5 years. Assuming a required rate of return of 8 % calculate the net present value. Would you recommend that Den..
Prepare the company's process cost summary for October using the weighted-average method. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished good inventory.
Sources of income/revenues in 2009, what are the FOUR categories of operating expenses reported (include cost of goods sold and what were the reported causes of changes in Total Stockholder's Equity in 2009
Behind the United States, the world's second largest emitter of energy-related emissions is and which of the following regions has the largest crude oil and natural gas reserves
The cost of goods manufactured schedule is used to calcualte the cost of producing products for a period of time. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculatin..
Prepare a single-step income statement for the year ended April 30, 2014 and prepare a multiple-step income statement for the year ended April 30, 2014 and what are the advantages of the multiple-step income statement?
For Fox Manufacturing, determine the annual manufacturing overhead cost-allocation rate and evaluate the amount of manufacturing overhead costs allocated to the Maize High School job.
How much cash was collected from customers during the period and When preparing a bank reconciliation, which of the following items should be added to the book balance?
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