Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Vanilla Chocolate Strawberry Anchovy Required: Budgeted Data Actual Operating Results Gallons Selling Price per Gallon 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate 117,000 87,000 Unfavorable Unfavorable $ 210,600 Unfavorable $ 93,600 Favorable Strawberry Anchovy Total $ 325,000 Favorable 468,000 Favorable 589,000 Favorable 261,000 225,000 Unfavorable 174,000 Favorable Favorable 100,000 Favorable 421,200 Favorable 46,800 Favorable $ 174,600 Favorable S 414,400 Favorable

Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Vanilla Chocolate Strawberry Anchovy Required: Budgeted Data Actual Operating Results Gallons Selling Price per Gallon 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate 117,000 87,000 Unfavorable Unfavorable $ 210,600 Unfavorable $ 93,600 Favorable Strawberry Anchovy Total $ 325,000 Favorable 468,000 Favorable 589,000 Favorable 261,000 225,000 Unfavorable 174,000 Favorable Favorable 100,000 Favorable 421,200 Favorable 46,800 Favorable $ 174,600 Favorable S 414,400 Favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Actual Operating Results Budgeted Data Flavor Gallons. Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla Chocolate Strawberry Anchovy 324,000 $ 1.95 $ 1.25 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.48 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round Intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total Sales Volume Variance Sales Mix Variance Sales Quantity Variance
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement Check my work
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 680 $ 2,060 $ 1,680 $50 $ 200,000 $22,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement < Prev 9 of 9 Next ........
Margot’s Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Budgeted Data Actual Operating Results Gallons Selling Price per Gallon Variable Costs per Gallon Gallons Selling Price per Gallon Variable Costs per Gallon Vanilla 306,000 $ 1.80 $ 1.10 246,000 $ 1.65 $ 1.00 Chocolate 382,500 2.60 1.70 352,500 2.45 1.60 Strawberry 255,000 2.35 1.25 385,000 2.55 1.30 Anchovy 76,500 3.60 2.10 196,500 4.10 2.30 Required: 1. Compute these variances (sales volume variance, sales mix variance, sales quantity variance) for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.)
Max began manufacturing operations for Ocean Bath Oils in 20x2. His biggest customer is a national retail store chain that sells hair and bath products. Max would like an estimate of the company's income from operations for 20x2. Calculate the company's income from operations by completing the following operating budgets (Q1, Q2, Q3, Q4 AND Year Total)and budgeted income statement Sales Budget Units Price Total sales Q1 Sales in units Add ending inv Desired total units Less beginning inv Total to produce 4,000 5 20,000 Q2 400 3,000 Q3 5,000 Production Budget 1) Desired units of ending FG inventory = 10% of next quarter sales 2) Beginning FG inventory is 400, ending for Q4 = 600 Q1 Q2 Q3 Q4 Q4 5,000 600
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Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Budgeted Data Selling Price per Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon $ 1.35 $ 0.65 $ 1.20 $ 0.55 252,000 315,000 210,000 63,000 192,000 285,000 340,000 183,000 Vanilla Chocolate 1.70 0.80 1.55 0.70 Strawberry Anchovy 1.90 0.80 2.10 0.85 2.70 1.20 3.20 1.40 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Anchovy Total
Gina Lakes Boating is the wholesale distributor of small recreational catamaran sailboats. Management has prepared the following summary data to use in its annual budgeting process: Budgeted sales (in units) 500 Selling price per unit $ 2,000 Cost per unit $ 1,600 Variable selling and administrative expenses (per unit) $ 75 Fixed selling and administrative expenses (per year) $ 105,500 Interest expense for the year $ 14,000 Required: Prepare the company’s budgeted income statement.
Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Budgeted Data Selling Price per Gallon Actual Operating Results Gallons Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate 307,500 1.60 0.70 277,500 1.45 0.60 Strawberry Anchovy 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total a. b. Sales Volume Variance Sales Mix Variance Sales Quantity Variance
We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 05WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. The totalcost of producing one unit includes $2 for direct materials, $1 for direct labor,and $0.50 for manufacturing overhead.Calculate the cost of goods sold for the month of March.
Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor Gallons Budgeted Data Selling Price per Gallon Actual Operating Results Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable Favorable Anchovy Favorable Favorable Favorable Total Favorable Favorable Favorable
Gig Harbor Boating is the wholesale distributor of a small recreatlonal catamaran sallboat. Management has prepared the following summary data to use In its annual budgeting process: Budgeted unit sales 500 Selling price per unit Cost per unit 24 1,970 1,460 Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 50 $ 196,e00 $ 13,00e Requlred: Prepare the company's budgeted Income statement for the year. Gig Harbor Boating Budgeted Income Statement