EBK CORNERSTONES OF COST MANAGEMENT
3rd Edition
ISBN: 9781305147102
Author: MOWEN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 2, Problem 22E
1.
To determine
Calculate the cost of goods sold for last year.
2.
To determine
Prepare an income statement of E company for last year.
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The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories.
INCOME STATEMENT
ACCOUNT NAME
DEBIT
CREDIT
Income Summary
32,000.00
31,000.00
Sales
324,000.00
Sales Returns and Allowances
13,310.00
Sales Discounts
7,700.00
Purchases
126,360.00
Purchases Returns and Allowances
1,200.00
Purchases Discounts
1,300.00
Freight In
7,500.00
Selling Expenses
61,560.00
General Expenses
50,884.00
299,314.00
357,500.00
Net Income
58,186.00
357,500.00
357,500.00
From the information given, prepare an income statement for the company.
Ralley Company
Income Statement
For Year Ended August 31, 20--
Revenue from Sales:
$fill in the blank 2
$fill in the blank 4
fill in the blank 6
fill in the blank 7
Net Sales
$fill in…
The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here. To save time and space, the expenses have been grouped together into two categories.
INCOME STATEMENT
ACCOUNT NAME
DEBIT
CREDIT
Income Summary
31,100.00
31,130.00
Sales
324,360.00
Sales Returns and Allowances
13,970.00
Sales Discounts
7,620.00
Purchases
126,210.00
Purchases Returns and Allowances
1,020.00
Purchases Discounts
1,110.00
Freight In
8,460.00
Selling Expenses
61,470.00
General Expenses
51,751.00
300,581.00
357,620.00
Net Income
57,039.00
357,620.00
357,620.00
From the information given, prepare an income statement for the company.
Ralley CompanyIncome StatementFor Year Ended August 31, 20--
(See images)
Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,850,000; cost of goods sold, $860,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $183,000. What is Amaz-a-nation's gross margin?
Chapter 2 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
Ch. 2 - What is an accounting information system?Ch. 2 - What is the difference between a financial...Ch. 2 - What are the objectives of a cost management...Ch. 2 - Define and explain the two major subsystems of the...Ch. 2 - What is a cost object? Give some examples.Ch. 2 - Prob. 6DQCh. 2 - What is a direct cost? An indirect cost?Ch. 2 - Prob. 8DQCh. 2 - What is allocation?Ch. 2 - Explain how driver tracing works.
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