Following are excerpts from an income statement:Food Sales265000Beverage Sales80000Cost of food sold78000Cost of Beverage sold20000Labor 111000Controllable Expenses67000Non-controllable Expenses27000Other Expenses4000Identify these items from the above information:a.) Prime cost dollars and percentageb.) Controllable Income dollars and percentagec.) Operating Income dollars and percentaged.) Income before Income Taxes dollars and percntagee.) Food Cost of Sales %f.) Beverage Cost of Sales %g.) Total Cost of Sales %

Question
Asked Oct 24, 2019
42 views

Following are excerpts from an income statement:

Food Sales 265000
Beverage Sales 80000
Cost of food sold 78000
Cost of Beverage sold 20000
Labor 111000
Controllable Expenses 67000
Non-controllable Expenses 27000
Other Expenses 4000

Identify these items from the above information:

a.) Prime cost dollars and percentage

b.) Controllable Income dollars and percentage

c.) Operating Income dollars and percentage

d.) Income before Income Taxes dollars and percntage

e.) Food Cost of Sales %

f.) Beverage Cost of Sales %

g.) Total Cost of Sales %

 

check_circle

Expert Answer

Step 1

Hence, the prime cost is $209,000 which is obtained by the addition of cost of sales and labour.The controllable income that  is $69,0000 obtained by subtracting prime cost and the...

help_outline

Image Transcriptionclose

Income statement Particulars Amount Sales Food Beverages Total sales Cost of sales Food Beverages Total cost of sales Labour Prime cost Controllable expenses Controllable income Non controllable expense Operating income $265,000 $80,000 $345,000 $78,000 $20,000 $98,000 $111,000 $209,000 $67,000 $69,000 $27,000 S42,000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: TB MC Qu. 05-113 Eastview Company uses a perpetual... Eastview Company uses a perpetual LIFO invento...

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of ...

question_answer

Q: During the current year, merchandise is sold for $98,300 cash and $644,900 on account. The cost of m...

A: Calculate the amount of net sales.

question_answer

Q: A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a)  Should the sales tax...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: Practice 4: Port-a-Home Ltd (PL) produces two lines of mobile homes: Doublewide and singlewide. Unit...

A: When resources for production are contrained, the line of product generating maximum contribution pe...

question_answer

Q: 60.000 units $75,000 $120,000 $65,000 90,000 units $75,000 $180,000 $80,000 $335,000 Cost A Cost B C...

A: Variable cost is the cost that changes with the change in production levels. It is directly proporti...

question_answer

Q: A recent annual report for NPS contained the following data: (dollars in thousands) Previous Year Cu...

A: Accounts Receivable Turnover represents the efficiency of the company to convert its Accounts receiv...

question_answer

Q: when prepareing a schedule of cost of goods manufactred for the month, how do you determine the cost...

A: Cost of goods manufactured:Cost of goods manufactured refers to the cost incurred for a making a pro...

question_answer

Q: Based on the following data for the current year, what is the number of days' sales in receivable? ...

A: Calculate accounts receivable turnover: 

question_answer

Q: The following information pertains to Wildhorse Company. 1.   Cash balance per books, August 31, ...

A: Prepare a bank reconciliation statement.