Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 800,400 640,320 160,080 160,080 640,320 32,080 512,320 $ 128,000 $ 128,000 Mementos $ 800,400 3. Assume that the company expects sales of each product to increase to 60,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Roun "per unit" answers to 2 decimal places.)
Q: Before preparing financial statements for the current year, the chief accountant for Cullumber Ltd.…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Phone Corporation owns 80 percent of Smart Company's stock. At the end of 20X8, Phone and Smart…
A: The sales revenue is the main source of income for the business. For consolidated sales, the inter…
Q: Problem 9-8 Retail inventory method; conventional [LO9-4] Grand Department Store, Inc., uses the…
A: The cost-to-retail ratio is multiplied by the ending inventory at retail to determine ending…
Q: P 16-1 Partnership income allocation—Statement of partnership capital Ell, Far, and Gar are…
A: A successful partnership may provide the partners with a number of benefits, such as the sharing of…
Q: Compute the Documentary stamp tax
A: Documentary Stamp tax is also known as DST. This is tax applied in the Philippines on the execution…
Q: Nardin Outfitters has a capacity to produce 18,500 of their special arctic tents per year. The…
A: Variable cost is the cost that changes with change in activity of cost driver used. Variable cost…
Q: ProNet Systems is a start-up company that makes connectors for high-speed Internet connections. The…
A: Variance refers to the difference in the actual cost incurred and standard cost. The variance can be…
Q: Due to the serious problems with the export market, Makadara Stores on 31 December 20 ceived a…
A: A statement of affairs is a statement that is prepared to show the assets and liabilities just like…
Q: Whispering Furniture Company started construction of a combination office and warehouse building for…
A: Depreciation can be defined as the reduction in the value of the assets as a result of use in the…
Q: In April a business records the monthly cost of their annual insurance premium. The entire year’s…
A: Recording of Insurance premium in advance: The amount of the insurance premiums that have been…
Q: JAR-174 tour company uses two measures of activity, routes and passengers in its cost formulas used…
A: The variance is the difference between the standard and actual production datal. The spending…
Q: Ivanhoe Clark opened Ivanhoe's Cleaning Service on July 1, 2022. During July, the following transact…
A: Income statement is the one which is prepared by the entity to determine the net income or loss. It…
Q: 14. How much is the total amount to be reported as cash and cash equivalents as of December 31,…
A: Cash and cash equivalents - are the item on the balance sheet which are reported under 'current…
Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…
A: Solution:a1 .ParticularsDetails Maximum loss amountDrysdale (12,500+71,500) / 50%$ 168,000Most…
Q: All questions are based on tax practitioners registered with the South African Revenue Services:…
A: Here are the following answers to your statements:True: Membership of a Recognized Controlling Body…
Q: DJ Company, a manufacturer, uses the indirect method for preparing its statement of cash flows. The…
A: Cash flows from operating activities is one of important section of cash flows statement. It shows…
Q: Gordon operates the Tennis Pro Shop in Blacksburg, Virginia. The Shop sells, manufacturers, and…
A: Sales tax is defined as the consumption tax imposed by the tax governing authority on the goods and…
Q: How receivables ledger works with double entry accounting
A: A Receivable ledger is a fundamental tool for managing a company's credit sales and ensuring that it…
Q: Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The…
A: The budget is used to estimate the expected amount of total revenue, total income, and total…
Q: The following information is taken from the accounting records of Rapid Runner Incorporated for the…
A:
Q: SOR-120 Inc. is a manufacturing company. It has received a special order for 11,000 units of its…
A: In a commercial setting, a client's special or tailored demand that is beyond the organization's…
Q: What is the amount of Jazz's dividends received deduction on the dividend it received from Williams…
A: A tax provision in the US called the Dividends Received Deduction (DRD) allows certain firms to…
Q: Han-7579 company manufactures 31,000 units of part T-25 each year. The company's cost per unit for…
A: The differential analysis is performed to compare the different alternatives available with…
Q: Processing...... 5.0 Packaging.. 0.5 Required: A labor cost control report for April. 4.50 4.00
A: A management tool for assessing labor usage effectiveness and efficiency in a corporation is the…
Q: Employee's Rates Matching Rates Paid by the EmployerSelf-Employed Rates • 7.65% on first $118,500 of…
A: FICA stands for Federal Insurance Contributions Act.FICA taxes include Social Security tax and…
Q: Mary and Carol each contribute $50,000 to their newly formed general partnership (each partner is…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: 4. Poppy Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: For making special order decisions that whether special order should be accepted or not, incremental…
Q: 1, 2024, Botosan... On January 1, 2024, Botosan Corporation leased equipment under a finance lease…
A: A right-of-use asset, or ROU asset, represents a lessee's authority to utilize a leased item,…
Q: How much is the ending balance of the Share Options Outstanding that will show in the 2024 Statement…
A: The entire number of stock options that a firm has granted to its employees or other stakeholders…
Q: What amount should Malay record as “income from subsidiary” based on Indian subsidiary’s reported…
A: Goodwill is an intangible asset which reflects the premium above the identifiable net assets of a…
Q: ABAKA Co. reported the following differences in the statement of financial position accounts on…
A: Cash flow statement is a part of financial statement prepared at the end of the accounting period.…
Q: You are the auditor in charge of the audit of Irene PLC, which has a 30 June year end. The…
A: The Events that occur after the end of a reporting period but before the financial statements are…
Q: value of $60. Record journal entries for the issuance of the bond, the first two interest payments,…
A: A corporation can raise funds by selling debt instruments to investors through the issuance of…
Q: machines during January elected to pay at the end of the 12-month period. Required: 1. Determine the…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Prepare the statement of cash flows
A: An organization's cash inflows and expenditures over a certain time are thoroughly summarized in the…
Q: XY is a domestic corporation. The taxable period is 2020 year gross income deductions 2016…
A: When a business experiences a net operating loss (NOL) in a specific tax year and is allowed by tax…
Q: Required information [The following information applies to the questions displayed below.] A company…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: The following are several figures reported for Allister and Barone as of December 31, 2021 Allister…
A: In financial accounting, consolidation is defined as a set of statements that presents…
Q: Mill Creek School District is a high school district in Mill Creek, Illinois. Mill Creek School…
A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…
Q: There is no preferred stock and the tax rate is 30%. Calculate each of the following for 2021:…
A: Debt ratio means ratio of total debt with total assets in the business. Debt equity ratio shows…
Q: Problem 7-7A Preparing a bank reconciliation and recording adjustments LO6 The following information…
A: A bank reconciliation statement is a record book or a list of transactions for a bank account. This…
Q: Apathy Company Date Dec. 2 18 20 22 27 29 29 Dec. 1 Deposit 21 Deposit 27 Deposit 31 Deposit Check…
A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…
Q: JSON-6854 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information…
A: Lets understand the basics.Key factors refer to the influential elements (e.g., direct material,…
Q: Bob's company produces 3 products with the following information Product SmallMedium Large…
A: Variable costs are those costs which changes along with change in sales activity level. Fixed costs…
Q: 6. A semiconductor manufacturer has been ordered by the city to stop discharging acidic waste…
A: The present value or the discounted cash flow procedure recognizes that cash flow streams at…
Q: Analyze and explain the vertical analysis given below.Make an interpretation of the vertical…
A: The comparative income statement is described as that statement in which the operating results for a…
Q: Sales COGS Gross Profit elect one: O 2017 1,000,000 300,000 A O O revenue is used as the base-figure…
A: The Vertical analysis mainly refers to the method in which each and every item is recorded as the…
Q: You are required to determine the amount to be included in Farmer A’s taxable income.
A: In a barter transaction, people exchange products or services without exchanging money. The tax…
Q: g and her spouse are both employees and salaries are their sole source of income. in the current…
A: According to the question given, we need to determine the maximum deduction that can be deducted…
Q: Alfarsi Industries uses the net present value method to make investment decisions and requires a 15%…
A: Net present value is the difference between present value of net cash flows and initial investment.…
Step by step
Solved in 3 steps
- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin Carvings $ 2,000,000 1,600,000 400,000 125,000 $ 275,000 2. Assume that the company expects sales of each product to decline to 30,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). Income (loss) Mementos $ 2,000,000 250,000 1,750,000 1,475,000 $ 275,000 Units HENNA Company Contribution Margin Income Statement Carvings $ Per unit Total Mementos $ Per unit Total Total
- Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Fixed costs Income (loss) Carvings $ 863,900 604,730 259, 170 116,170 $ 143,000 $ 143,000 2. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in uni selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each the two products). (Round "per unit" answers to 2 decimal places.) Units Mementos $ 863,900 86,390 777,510 634,510 HENNA COMPANY Contribution Margin Income Statement Carvings 36,000 36,000 36,000 $ Per unit 69 $ Total 0 0 Mementos $ Per unit $ $ EA Total 0 0 0 $ HA $ Total 0 0 0…[The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 40,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 720,000 576,000 Mementos $ 720,000 144,000 144,000 34,000 $110,000 576,000 466,000 $ 110,000 3. Assume that the company expects sales of each product to increase to 54,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit TotalBlossom Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income (a) Tingler Shocker Stunner $296,000 $504,000 $200,000 145.000 190,000 151,000 314,000 114,840 225,160 $36,160 $88,840 Net income Fixed expenses consist of $290,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler). $79.000 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. Compute current net income for Blossom Company. 135,000 65,000 92,000 $(27,000)
- ! Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 787,500 551,250 236,250 111,250 Mementos $ 787,500 78,750 708,750 583,750 $ 125,000 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales 28,000 $ 0 $ 0…Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 46,000 units of each product. Income statements for each product follow. Carvings Mementos Sales Variable costs Fixed costs Income $ 800,400 640,320 $ 800,400 160,080 Contribution margin 160,080 32,080 640,320 512,320 $ 128,000 $ 128,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Contribution Margin Ratio PRODUCT CARVINGS Numerator: 1 Denominator: Contribution margin / Sales Break-Even Point in Dollars Numerator: Total fixed costs Contribution margin ratio 0 Denominator: Sales = Break-even point in dollars 0 PRODUCT MEMENTOS Contribution Margin Ratio Contribution margin ratio 0…Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 58,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 974,400 $ 974,400 Variable costs 779,520 194,880 Contribution margin 194,880 779,520 Fixed costs 46,880 631,520 Income before taxes 148,000 148,000 Income taxes (32% rate) 47,360 47,360 Net income $ 100,640 $ 100,640 2. Assume that the company expects sales of each product to decline to 41,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 32% tax rate). Also, assume that any…
- Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 58,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 974,400 $ 974,400 Variable costs 779,520 194,880 Contribution margin 194,880 779,520 Fixed costs 46,880 631,520 Income before taxes 148,000 148,000 Income taxes (32% rate) 47,360 47,360 Net income $ 100,640 $ 100,640 3. Assume that the company expects sales of each product to increase to 72,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). (Round "per unit" answers to 2…! Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 51,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 821,100 492,660 328,440 187,440 Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 821,100 82,110 738,990 597,990 $ 141,000 $ 141,000 2. Assume that the company expects sales of each product to decline to 34,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Units HENNA COMPANY Contribution Margin Income Statement Carvings 34,000…Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…