Excel Analytics 01-01 (Static) Cost Concepts [LO1-2, LO1-3, LO1-4]
Crispin Companys sales from last year were $8 million. The company maintains no beginning or ending inventories. It has assembled all of its costs from last year and would like your assistance in sorting these costs into various categories, depicting them graphically, and preparing traditional and contribution format income statements.
AWN 8,000,000 8,000,000 8,000,000 14 1 Crispin Company 2 Traditional Format Income Statement 3 4 Sales $ 5 Cost of goods sold 6 Gross margin $ 7 Selling and administrative expenses: 8 Selling 9 Administrative $ 10 Net operating income $ 11 12 13 Crispin Company Contribution Format Income Statement 15 Sales $ 16 Variable expenses: 17 Cost of goods sold 18 Variable selling 19 Variable administrative $ 20 Contribution margin $ 21 Fixed expenses: 22 Fixed manufacturnig overhead 23 Fixed selling 24 Fixed administrative $ 25 Net operating income $ 26 27 28 Fill In 29 Auto-Calc 30 31 8,000,000 8,000,000 ulu 8,000,000 NN 3. Refer to the Income Statements tab within your template. Using the SumlF function to quantify the cost of goods sold, the total selling expense, and the total administrative expense: a. Prepare a traditional format income statement. (Hint: The cost of goods sold should include all direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead costs.) b. Based on the traditional format income statement, what is the gross margin? c. Based on the traditional format income statement, what is the total selling and administrative expense? Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare a traditional format income statement. (Hint: The cost of goods sold should include all direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead costs.) The cost of goods sold in this income statement is Req Req 3B Req 3C Based on the traditional format income statement, what is the gross margin? The gross margin is Req 3A Req 3B Req 3C Based on the traditional format income statement, what is the total selling and administrative expense? The total selling and administrative expense is AWN 8,000,000 8,000,000 8,000,000 14 1 Crispin Company 2 Traditional Format Income Statement 3 4 Sales $ 5 Cost of goods sold 6 Gross margin $ 7 Selling and administrative expenses: 8 Selling 9 Administrative $ 10 Net operating income $ 11 12 13 Crispin Company Contribution Format Income Statement 15 Sales $ 16 Variable expenses: 17 Cost of goods sold 18 Variable selling 19 Variable administrative $ 20 Contribution margin $ 21 Fixed expenses: 22 Fixed manufacturnig overhead 23 Fixed selling 24 Fixed administrative $ 25 Net operating income $ 26 27 28 Fill In 29 Auto-Calc 30 31 8,000,000 8,000,000 ulu 8,000,000 NN 3. Refer to the Income Statements tab within your template. Using the SumlF function to quantify the cost of goods sold, the total selling expense, and the total administrative expense: a. Prepare a traditional format income statement. (Hint: The cost of goods sold should include all direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead costs.) b. Based on the traditional format income statement, what is the gross margin? c. Based on the traditional format income statement, what is the total selling and administrative expense? Complete this question by entering your answers in the tabs below. Req 3A Req 3B Req 3C Prepare a traditional format income statement. (Hint: The cost of goods sold should include all direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead costs.) The cost of goods sold in this income statement is Req Req 3B Req 3C Based on the traditional format income statement, what is the gross margin? The gross margin is Req 3A Req 3B Req 3C Based on the traditional format income statement, what is the total selling and administrative expense? The total selling and administrative expense is
