ESSAY. Write your answer in the space provided or on a separate sheet of paper 1

Question

ESSAY. Write your answer in the space provided or on a separate sheet of paper 12) Ceriweden, Inc. has provided the following financial data for the year: Units produced and sold Sales price Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative costs Fixed manufacturing overhead Fixed selling and administrative costs 3,500 units 220 per unit r unit r unit unit r unit $105,000 per year $140,00 per year $4 S20 There are no beginning inventories. Prepare an income statement for the year using the traditional format. 13) Valentina Company will begin operations on January 1st. The company has provided the following details concerning budgeted sales: $75,000 Jan Feb March 80,000 Api 82,000 May June 92,000 80,500 The collection policy of the company is to collect 20% in he month of sale, 40% in he following monk, ond remaining 40% in the second month after the month of sale. All sales are made on acount. Calculate the cash receipts from customers for the first six months.

Explanation / Answer

12

13

Product cost Direct material 25 Direct labor 45 Variable manufacturing overhead 30 Fixed manufacturing (105,000/3500) 30 Total product cost 130 Income statement Sales revenue 770000 (3500*220) less Cost of goods sold 455000 (3500*130) Gross profit 315000 Less Operating expense Variable selling and admin cost 70000 Fixed sellig and admin cost 140000 210000 Net operating income 105000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.