ch 13 segment and interim reporting

The correct answer is D, $700,000. The nonmanufacturing costs are the costs incurred to make the inventory are crossed out below. Notice that purchasing raw material is not the same thing as incurring a cost. You have simply traded one asset for another. You have not yet used it to make a product, or provide a service.

• In 1993 cost of goods sold being 90% of sales and 9.6% gross profit of sales. Company’s lack of ability to manage inventory and lack of cash forced them to order from more expensive (12-15%more) warehouse than steel mills.

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

Cost – HD’s cost of goods sold has increased from 1991 to 1995 due to expansion of production. Similarly, the cost of selling, admin and engineering has also increased.

b. Determine the two product numbers with the largest total dollar sales for subsequent follow-up to verify the selling prices and quantities shipped.

a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?

4. For the most recent year, what is the amount of cost of goods sold in the

Consolidated Company makes cardboard boxes. During the most recent accounting period Consolidated paid $60,000 for raw materials, $48,000 for labor, and $52,000 for overhead costs that were incurred to make boxes. Consolidated started and completed 400,000 boxes. Consolidated desires to earn a gross margin that is equal to 40% of product cost. Based on this information the selling price per box is:

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.

b) What is the firm’s forecasted average daily sales for the first three months of operations? For the entire half-year?

Cost of goods sold will continue to be an area that further increases as a result of management decisions. We estimate that COGS will increase from 42389.35 to 64621.89, which is an

3. Assume that cost of goods sold for a company consists only of variable costs and gross margin is = (revenue – cost of goods sold)/revenue. Which of the following is true

cost-of-goods-sold section might be in relation to the sales total. In the case of a merchandising firm,