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vovangra [49]
3 years ago
5

Suppose in its income statement for the year ended June 30, 2022, The Clorox Company reported the following condensed data (doll

ars in millions). Salaries and wages expenses $ 460 Research and development expense $ 114 Depreciation expense 90 Income tax expense 736 Sales revenue 7,630 Loss on disposal of plant assets 46 Interest expense 161 Cost of goods sold 3,700 Advertising expense 499 Rent expense 105 Sales returns and allowances 230 Utilities expense 60 Assume a tax rate of 34%. Prepare a multiple-step income statement.
Business
1 answer:
Bumek [7]3 years ago
5 0

Answer:

                               Clorox Company

Income statement for the year ended June 30, 2022

Sales revenue (7,630 - 230)                                 7,400

Less Cost of goods sold                                      (3,700)

Gross Profit                                                            3,700

<u>Operating Expenses</u>

Salaries and wages expenses              460

Research and development expense   114

Advertising expense                              499

Rent expense                                         105

Utilities expense                                      60         (1,238)

Operating Income                                                 2,462

<u>Non Operating Expenses</u>

Loss on disposal of plant assets            46

Interest expense                                     161

Income tax expense                              736          (943)

Net Income                                                             1,519

Explanation:

A multiple - step Income statement shows a separately : the Income generated from the Company`s Primary Activities known as <em>Operating Income</em> whilst all other income or expenses arising from Secondary Activities are categorized as <em>Non Operating Activities</em>.

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2 years ago
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its ave
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Answer:

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= $61,500

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4. Variable cost per unit of 12,500 produced and sold:

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5. Total variable costs for 8,000 units produced and sold:

= 8,000 * $11.55

= $92,400

6. Total variable costs for 12,500 units produced and sold:

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8. Average fixed manufacturing cost per unit produced for 12,500 units:

= $4.00

9. Total fixed manufacturing cost for 8,000 units:

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= $32,000

10. Total fixed manufacturing cost for 12,500 units:

= 12,500 x $4.00

= $50,000

11. Total amount of manufacturing overhead costs for 8,000 units:

= 8,000 * $5.60

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Variable manufacturing overhead = $1.60

Fixed manufacturing overhead =     $4.00

Total per unit =                                  $5.60

12. Total amount of manufacturing overhead for 12,500 units:

= 12,500 x $5.60

= $70,000

per unit = $5.60

Variable manufacturing overhead = $1.60

Fixed manufacturing overhead =     $4.00

Total per unit =                                  $5.60

13. Contribution margin per unit:

Selling price =                                          $21.40

Variable manufacturing cost per unit =  $9.90

Contribution margin per unit                  $11.50

14. Total amounts of direct and indirect manufacturing costs for 12,000 units:

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Indirect manufacturing costs = $4.00 x 12,000 = $48,000

15. Incremental manufacturing cost if Martinez increases production from 10,000 to 10,001:

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Explanation:

a) Data and Calculations:

Average Cost Per Unit

Direct materials                              $ 5.40

Direct labor                                     $ 2.90

Variable manufacturing overhead $ 1.60

Total Variable Costs per unit        $ 9.90

Fixed manufacturing overhead    $ 4.00

Total product cost per unit          $13.90

Period Costs:

Fixed selling expense                   $ 2.40

Fixed administrative expense       $ 2.10

Sales commissions                         $ 1.10

Variable administrative expense $ 0.55

Total period costs  per unit           $6.15

All Variable costs:

Variable production costs             $9.90

Sales Commission                           $1.10

Variable administrative expense $ 0.55

Total Variable costs                      $11.55

All Fixed Costs:

Fixed manufacturing overhead    $ 4.00

Fixed selling expense                   $ 2.40

Fixed administrative expense       $ 2.10

Total fixed costs per unit               $8.50

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