The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount 1,260, 000 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases %24 450 %24 17 155,000 115,000 60,000 100, 000 320,000 %24 %24 Requlred: 1. Prepare a traditional income statement for the quarter ended March 31. 2 Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount 1,260, 000 Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases %24 450 %24 17 155,000 115,000 60,000 100, 000 320,000 %24 %24 Requlred: 1. Prepare a traditional income statement for the quarter ended March 31. 2 Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 3MAD: The general merchandise retail industry has a number of segments represented by the following...

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Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
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The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies: a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place. b. Determine the number of days sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place. c. Interpret these results based on each companys merchandising concept.
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: amount Sales 1408000 Selling price per pair of skis 440 Variable selling expense per pair of skis 45 Variable administrative expense per pair of skis 20 Total fixed selling expense 135000 Total fixed administrative expense 100000 Beginning merchandise inventory 70000 Ending merchandise inventory 120000 Merchandise purchases 305000 1. Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 0 Net operating income 2. Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Inc. Contribution…
The Alpine House, Inc. is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue $ 968,000 Selling price per pair of skis $ 440 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 130,000 Total fixed administrative expense $ 115,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 115,000 Merchandise purchases $ 300,000 1. prepare the traditional income statement for the quarter ended march 31 come statement for the quarter ended March 31. The Alpine House, Incorporated Traditional Income Statement Sales $968,000 Cost of goods sold 255,000 Gross margin 713,000 Selling and administrative expenses: Selling expenses $233,400 Administrative expenses 159,000 392,400 784,800 Net operating income
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: AmountSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000Selling price per pair of skis . . . . . . . . . . . . . . . . . . . . . $750Variable selling expense per pair of skis . . . . . . . . . . $50Variable administrative expense per pair of skis . . . $10Total fixed selling expense . . . . . . . . . . . . . . . . . . . . . . $20,000Total fixed administrative expense . . . . . . . . . . . . . . . $20,000Beginning merchandise inventory . . . . . . . . . . . . . . . . $30,000Ending merchandise inventory . . . . . . . . . . . . . . . . . . $40,000Merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Required:1. Prepare a traditional income statement for the quarter ended March 31.2. Prepare a…
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $1408000 Selling price per pair of skis $440 Variable selling expense per pair of skis $45 Variable administrative expense per pair of skis $20 Total fixed selling expense $135,000 Total fixed administrative expense $100,000 Beginning merchandise inventory $70,000 Ending merchandise inventory $120,000 Merchandise purchases $305,000 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31 3. What was the contribution margin per unit ?
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 Selling price per pair of skis . . . . . . . . . . . . . . . . . . . . . . . $750 Variable selling expense per pair of skis . . . . . . . . . . . . . $50 Variable administrative expense per pair of skis . . . . . . . $10 Total fixed selling expense . . . . . . . . . . . . . . . . . . . . . . . . $20,000 Total fixed administrative expense . . . . . . . . . . . . . . . . . . $20,000 Beginning merchandise inventory . . . . . . . . . . . . . . . . . . $30,000 Ending merchandise inventory . . . . . . . . . . . . . . . . . . . . . $40,000 Merchandise purchases . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 Required: Prepare a traditional income statement for the quarter ended March 31. Prepare a contribution format income statement for the…
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,271,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 15 Total fixed selling expense $ 140,000 Total fixed administrative expense $ 100,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 285,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue $ 1,189,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 115,000 Beginning merchandise inventory $ 80,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 285,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter?
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,419,000 Selling price per pair of skis $ 430 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 16 Total fixed selling expense $ 160,000 Total fixed administrative expense $ 110,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 110,000 Merchandise purchases $ 295,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
The Alpine House, Inc. is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue $ 968,000 Selling price per pair of skis $ 440 Variable selling expense per pair of skis $ 47 Variable administrative expense per pair of skis $ 20 Total fixed selling expense $ 130,000 Total fixed administrative expense $ 115,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 115,000 Merchandise purchases $ 300,000 Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Incorporated Contribution Format Income Statement Sales $968,000 Variable expenses: Cost of goods sold $275,000 150,680 Administrative expenses Cost of goods sold 425,680 Contribution margin Fixed expenses: What was the contribution margin per unit?…