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3 The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 6.950 batteries at a cost of

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3 The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 6.950 batteries at a cost of $125 per battery. It withdrew 6,400 batteries from the storeroom during the month of these, 100 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining 6,300 batteries withdrawn from the storeroom were placed in cars being produced by the company of the cars in production during April, 90 percent were completed and transferred from work in process to finished goods of the cars completed during the month 30 percent were unsold at April 30th. Required: 1. Determine the cost of batteries that would appear in each of the following accounts on April 30th. Cost 1a 1b. 1. 10. fe Name of the Account Raw Materials Work in Process Finished Goods Cost of Goods Sold Selling Expense The following cost data pertain to the operations of Montgomery Department Stores, Inc. for the month of July. Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-vendale Store Apparel Department manager's salary-vendale Store Central warehouse lease cont Janitorial costs-evendale Store 52,600 98,700 67,800 $ 18,100 $ 9,000 $ 12,500 $ 9,700 $ 17,200 $ 12.000 The Evendale Store is one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company's stores. Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to total departmental sales? 1. Total direct costs for the Apparel Department 2. Total direct costs for the Evondale Store 3. Total direct costs for the Apparel Department that are also variable costs Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 375,000 $ 25,000 $ 250,000 $ 12,500 $ ? $ 15,000 $ 18,750 $ 2 $ 75,000 $ 22,500 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red 3 to 5 Req 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Variable expenses Reg 1 Req 2 Reg 3 to 5 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Variable expenses: Fixed expenses: Reg1 Req 2 > Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 to 5 Reg 6 Prepare a traditional format income statement. Todrick Company Traditional Income Statement Selling and administrative expenses: 2. Prepare a traditional format income statement 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful operating income will change in responses to changes in unit sales? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 to 5 Req 6 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit

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