please show the calculation used to fill each answer box. Thank you (a)Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 orparentheses e.g. (2,945).)RevenuesCostsCost of Goods SoldOperating ExpensesShipping ExpensesNet IncometA$Reject order$LA$Accept order241800$Net IncomeIncrease (Decrease) Lily Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating resultswhile operating at 80% of plant capacity:Sales (77,000 units)Cost of goods soldGross profitOperating expensesNet income$6,930,0005,005,0001,925,000770,000$1,155,000Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.In October, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Company. Acceptanceof the order would result in an additional $6,300 of shipping costs but no increase in fixed operating expenses.

Lets understand the basics. When special order situation arises, then special order sale price needs…

Answered: 7,000 units) goods sold rofit ng…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,375,000 Cost of goods sold 2,610,800 Gross profit 1,764,200 Operating expenses 841,190 Net income $923,010 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.In September, Moonbeam receives a special order for 23,100 toasters at $7.85 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.(a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)…
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $935,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 80% variable and 20% fixed. Moonbeam receives aspecial order for 15000 toasters at $7.60 each from Luna Company. Acceptance of the order would result in an additional $3000 of shipping cost but no increase in fixed assets. a) Prepare an incremental analysis for the special orderb) Should Moonbeam accept the special order. Why or why not?
Cullumber Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (358,400 units) Cost of goods sold Gross profit Operating expenses Net income (a) Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Cullumber receives a special order for 24.500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cost of goods sold Operating expenses $4,377.000 2,590,720 1,786.280 837.760 Net…
The following information relates to XYZ manufacturing for the first quarter of 2021: Fixed Cost MVR 50,000 Total Cost MVR 80,000 Total Revenues MVR 120,000 Number of units produced and sold during the period is 10000 units. Calculate: a) Break-even point in units b) Margin of safety in units and value
Crane Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (364,000 units) Cost of goods sold Gross profit Operating expenses Net income Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Crane receives a special order for 18,600 toasters at $7.95 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, eg. 5,725. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (45)) Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2…
First Company manufactures knife sets. For the first ten months of 2021, the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000 units) $90,000,000 Cost of goods sold 54,000,000 Gross profit 36,000,000 Operating expenses 24,000,000 Net income $12,000,000 An analysis of costs and expenses reveals that variable cost of goods sold is $85 per unit and variable operating expenses are $35 per unit. In November, Firsts Cutlery Company receives a special order for 30,000 knife sets at $135 each from a major retail shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses. Instructions (a) Evaluate and Determine Whether to Accept or Reject this Special Order.
Greek Manufacturing Company produces and sells a line of product that are sold usually company has a maximum production capacity of 100,000 units per year. Operating at normal capacity, the business earned Operating Income of $600,000 in 2020. The following cost data has been prepared for the year year round. The ended December 31, 2020. Selling price per unit. $50.00 Production Costs: Direct Materials $10.00 Direct Labour $8.00 Variable Manufacturing Overhead $7.00 Fixed Manufacturing Overhead.. . $450,000 Fixed Selling & Administrative Expenses... $300,000 Variable selling expense per unit $10.00 g) Greek's management team is concerned about the selling expenses associated with the product and wants to reduce the variable selling expense per unit by 30%, which will see a simultaneous reduction in the total fixed selling expenses by $30,000. If they are able to accomplish this feat, it is expected that sales volume for the year will fall by 16%% below normal capacity. What must the…
Blossom Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,040,000 $50.00 Cost of goods sold 3,528,000 35.00 Selling and administrative expenses 453,600 4.50 Net income $1,058,400 $10.50 Fixed costs for the period were cost of goods sold of $1,008,000, and selling and administrative expenses of $181,440.In July, normally a slack manufacturing month, Blossom receives a special order for 10,080 basketballs at $32.00each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and…

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7,000 units) goods sold rofit ng expenses me $6,930,000 5,005,000 1,925,000 770,000 $1,155,000 oods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. er, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Co 20