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chart, margin of safety, and Income Statement Additional Questions Final Questions Labels and Amount Descriptions Wolsey Industries Inc. expects to maintain the same inventories at

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chart, margin of safety, and Income Statement Additional Questions Final Questions Labels and Amount Descriptions Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs tor the yoar is therefore assumed to be equal to the oost of goods sold. With this in mind, the various department hoads were asked to submit ostmates of the costs for their departments durting tha year A summary report of these estimates is as follows Estimated one Mariable Cos per unit sold) Production costs 4600 40.00 0.00 3 Direct materials Direct labor Factory overhead Selling expenses: Sales salaries and commissions Advertising 20000000 8.00 110,000.00 0,000.00 12,000.00 7600.00 9 Trave 1.00 10Miscellaneous selling expense s Administrative expenses 12 Office and officers' salaries 15) Supplies 32,000.00 10,000.00 1340000 4.00 Prev 10,000.00 0,000.00 12,000.00 8.00 s Advertising Travel 10 Miscellaneous selling expense 11 Administrative expenses: 12 Office and officers' salaries 1s Supplies 14 Miscellaneous administrative expense 15 Total 7,600.00 100 32,000.00 0,000.00 13,400.00 4.00 1.00 120.00 525,000.00 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Required: A. Prepare an estimated income statement for 20YB. Refer to the Labels and Amount Descriptions ist provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. B. C. Determine the break-even sales in units and dollars D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? E. What is the expected margin of safety in dollars and as a percentage of sales? F. Determine the operating leverage. Round to one decimal place. Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold December 31, 20Y8 Direct labor Direct materials Expenses Factory overhead For the Month Ended December 31, 20Y8 For the Year Ended December 31, 20Y8 Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total expenses Total selling expenses Travel Variable cost of goods sold Income Statement Additional Questions Final Questions Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer A. Prepare an estimated income statement for 20Y8. complete the statement heading choices for text entries. Be suro to Wolsey Industries Inc. Estimated Income Statement (Label) 2 (Label) 8 (Label) ! Selling expenses: 8 (Label) 9 Selling expenses: 5 Administrative expenses: 20 Total expenses Check My Work Email InstructorSav Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and ope Income Statement Additional Ques Labels and Amount Descriptions Instructions Additional Questions B. What is the expected contribution margin ratio? C. Determine the break-even sales in units and dollars. units Units Dollars D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? sales, cost-volume-profit chart, margin of safety, and o ntribution margin, break-even sales, cost-volume-profit chart, margin of safety, and o Income Statement Additional Qu Labels and Amount Descriptions Instructions Final Questions E. What is the expected margin of safety in dollars and as a percentage of sales? Dollars Percentage F. Determine the operating leverage. Round to one decimal place. chart, margin of safety, and Income Statement Additional Questions Final Questions Labels and Amount Descriptions Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs tor the yoar is therefore assumed to be equal to the oost of goods sold. With this in mind, the various department hoads were asked to submit ostmates of the costs for their departments durting tha year A summary report of these estimates is as follows Estimated one Mariable Cos per unit sold) Production costs 4600 40.00 0.00 3 Direct materials Direct labor Factory overhead Selling expenses: Sales salaries and commissions Advertising 20000000 8.00 110,000.00 0,000.00 12,000.00 7600.00 9 Trave 1.00 10Miscellaneous selling expense s Administrative expenses 12 Office and officers' salaries 15) Supplies 32,000.00 10,000.00 1340000 4.00 Prev 10,000.00 0,000.00 12,000.00 8.00 s Advertising Travel 10 Miscellaneous selling expense 11 Administrative expenses: 12 Office and officers' salaries 1s Supplies 14 Miscellaneous administrative expense 15 Total 7,600.00 100 32,000.00 0,000.00 13,400.00 4.00 1.00 120.00 525,000.00 It is expected that 21,875 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 27,000 units. Required: A. Prepare an estimated income statement for 20YB. Refer to the Labels and Amount Descriptions ist provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. B. C. Determine the break-even sales in units and dollars D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? E. What is the expected margin of safety in dollars and as a percentage of sales? F. Determine the operating leverage. Round to one decimal place. Labels and Amount Descriptions Advertising Contribution margin Cost of goods sold December 31, 20Y8 Direct labor Direct materials Expenses Factory overhead For the Month Ended December 31, 20Y8 For the Year Ended December 31, 20Y8 Gross profit Income from operations Manufacturing margin Miscellaneous administrative expense Miscellaneous selling expense Office and officers' salaries Sales Sales salaries and commissions Supplies Total administrative expenses Total expenses Total selling expenses Travel Variable cost of goods sold Income Statement Additional Questions Final Questions Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer A. Prepare an estimated income statement for 20Y8. complete the statement heading choices for text entries. Be suro to Wolsey Industries Inc. Estimated Income Statement (Label) 2 (Label) 8 (Label) ! Selling expenses: 8 (Label) 9 Selling expenses: 5 Administrative expenses: 20 Total expenses Check My Work Email InstructorSav Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and ope Income Statement Additional Ques Labels and Amount Descriptions Instructions Additional Questions B. What is the expected contribution margin ratio? C. Determine the break-even sales in units and dollars. units Units Dollars D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? sales, cost-volume-profit chart, margin of safety, and o ntribution margin, break-even sales, cost-volume-profit chart, margin of safety, and o Income Statement Additional Qu Labels and Amount Descriptions Instructions Final Questions E. What is the expected margin of safety in dollars and as a percentage of sales? Dollars Percentage F. Determine the operating leverage. Round to one decimal place

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