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Whitepunk [10]
2 years ago
5

The cost accountant for Angie’s Apparel has compiled the following information for last month's operations. Administrative costs

$ 72,000 Merchandise inventory, July 1 28,000 Merchandise inventory, July 31 25,000 Merchandise purchases 630,000 Sales commissions 43,500 Sales revenue 944,000 Store rent 13,900 Store utilities 3,100 Transportation-in costs 5,300 Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement.
Business
1 answer:
morpeh [17]2 years ago
4 0

Answer:

Given that,

Administrative costs = $72,000

Merchandise inventory, July 1 = 28,000

Merchandise inventory, July 31 = 25,000

Merchandise purchases = 630,000

Sales commissions = 43,500

Sales revenue = 944,000

Store rent = 13,900

Store utilities = 3,100

Transportation-in costs = 5,300

1. Cost of goods sold statement:

For the Month Ended July 31,

Total cost of goods purchased = Merchandise purchases + Transportation-in

                                                    = 630,000 + 5,300

                                                    = $635,300

Cost of goods available for sale = Merchandise inventory, July 1  + Total cost of goods purchased

                                                      = 28,000 + $635,300

                                                      = $663,300

Cost of goods sold = Cost of goods available for sale - Merchandise inventory, July 31

                                = $663,300 - $25,000

                                = $638,300

2.  Income statement:

For the Month Ended July 31,

Gross margin = Sales revenue - Cost of goods sold

                      = 944,000 - $638,300

                      = $305,700

Marketing and administrative costs = Administrative costs + Sales commissions + Store rent + Store utilities

                                                          = $72,000 + $43,500 + $13,900 + $3,100

                                                          = $132,500

Operating profit = Gross margin - Marketing and administrative costs

                           =  $305,700 - $132,500

                           = $173,200

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In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.

In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment .

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Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components. Of the $400,000, $240,000 is fixed appraisa
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The question is incomplete, the option include:

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Explanation:

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