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sesenic [268]
3 years ago
13

Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The follo

wing information was provided for the coming year. Poinsettias Fruit Trees Sales $970,000 $3,100,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable.
Business
1 answer:
scoray [572]3 years ago
5 0

Answer

A= Net operating loss = (924800)

B= Net operating profit = $9000

Explanation:                                                        A                               B  

                                                                    (Poinsettia)                 (Fruit tree)              

                                                                                   $                               $

Sales                                                                  =970000     ;           = 3100000

less: Variable cost of goods sold                    = (<u>460000</u>)  ;          =(<u>1630000</u>)

Gross contribution margin                                 510000     ;              1470000

Less: <u>Selling expense (4% o sales)</u>

    A (970000*4%)

   B(310000 *4%)                                               ( <u>38800</u>)      ;            ( <u>124000</u>)

 Contribution margin                                         471200     ;             1346000

Less: Fixed overheads                                    <u> (800000</u>)    ;           <u> (800000)</u>

                                                                         (328800)     ;            546000

less: Fixed Selling & admin expense             <u>(146000)</u>      ;           <u>  (87000)  </u>  

                                                                         (474800)     ;           (459000)

Less: Common selling and admin expense (<u>450000) </u>    ;            (<u>450000)</u>

Net operating income /( loss)                        (924800)     ;             9000                                                      

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Explanation:

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Total manufacturing overhead $ 37,000

Total product cost= $181,000

7 0
3 years ago
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Answer:

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May 10     Treasury Stock A/c            $254,400

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                           Cash A/c                                        $207,480

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2 years ago
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Answer:

(A) is the manner in which the burden of a tax is shared among participants in a market

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