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Olenka [21]
3 years ago
8

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its mo

st recent monthly contribution format income statement:
Sales $ 1,546,000
Variable expenses 573,480
Contribution margin 972,520
Fixed expenses 1,070,000
Net operating income (loss) $ (97,480)
In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:

Division

East Central West
Sales $ 416,000 $ 630,000 $ 500,000
Variable expenses as a percentage of sales 48 % 26 % 42 %
Traceable fixed expenses $ 282,000 $ 324,000 $ 206,000
Required:

1. Prepare a contribution format income statement segmented by divisions.

2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $28,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented?

2-b. Would you recommend the increased advertising?
Business
1 answer:
mestny [16]3 years ago
3 0
I'm not sure to be honest
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Jasmine (29) is filing as a single taxpayer. In 2019, she received income from the following sources:
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Carolina Hills Manufacturing has two processing departments, Department I and Department II. During the year, direct materials w
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Answer:

Journal Entry to record the transaction

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Dr. Work in Process Department II         $300,000      

Dr. Manufacturing Overhead                  $8,000

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The direct material is charged to the work in process account, because it is an direct expense and all the direct expenses are charged to the work in process account like indirect material, indirect labor etc.

The indirect material is charged to manufacturing overhead account because all the indirect expenses are charged to the manufacturing overhead account like indirect material, indirect labor etc.

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