Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties...
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Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating incone Product White 48% Fragrant 20% Loonzain 32% Total 100% $ 316,800 95,040 $ 221,760 100% $132,000 30% 105,600 100% 80% $211,200 116,160 100 55% $660,000 100% 316,800 48% 70% $ 26,400 20% $ 95,040 45% 343,200 52% 233,480 $ 109,720 ces Dollar sales to break-even - Fixed expenses / CM ratio $233,480/0.52= $449,000 As shown by these data, net operating income is budgeted at $109,720 for the month and the estimated break-even sales is $449,000 Assume that actual sales for the month total $660,000 as planned; however, actual sales by product are: White, $211,200; Fragrant, $264,000; and Loonzain, $184,800. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating incone Product White 48% Fragrant 20% Loonzain 32% Total 100% $ 316,800 95,040 $ 221,760 100% $132,000 30% 105,600 100% 80% $211,200 116,160 100 55% $660,000 100% 316,800 48% 70% $ 26,400 20% $ 95,040 45% 343,200 52% 233,480 $ 109,720 ces Dollar sales to break-even - Fixed expenses / CM ratio $233,480/0.52= $449,000 As shown by these data, net operating income is budgeted at $109,720 for the month and the estimated break-even sales is $449,000 Assume that actual sales for the month total $660,000 as planned; however, actual sales by product are: White, $211,200; Fragrant, $264,000; and Loonzain, $184,800. Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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