Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product

image text in transcribed
image text in transcribed
image text in transcribed
Gold Star Rice, Ltd., 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 salon Sales Variable expenses Contribution margin Fixed expenses Net operating income 100 White 48 $ 312,000 93,600 $ 218,400 Product Fragrant Loona in 20 32 $ 130,000 100 5 208.000 100 104,000 BO 110,400 55 $ 26,000 20 S 93,600 45 100 303 70 Total 100 5 650,000 312.000 333,000 225, 220 $ 111,280 528 Pixed expenses Dollar sales to break-even - $225, 220 $436,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $11,280 for the month and the estimated break-even sales is $436,000. Assume that actual sales for the month total $650,000 as planned; however, actual sales by product ore: White, $208,000, Fragrant, $260,000, and Loonzain, $182.000. 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 Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the month based on the actual sales data. Gold Star Rice, Ltd Contribution Income Statement Product Fagrant % % % Total White % Loonzain % % Percentage of total sales % % % % % % % % % % Required 1 Required 2 > 3 As shown by these data, net operating income is budgeted at $111.280 for the month and the estimated break-even sales is $436,000. Assume that actual sales for the month total $650,000 as planned: however, actual sales by product are: White, $208,000; Fragrant, $260,000; and Loonzain. $182,000. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the break-even point in dollar sales for the month based on your actual data. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Break-even point in dollar sales (Required 1 Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value In A Dynamic Business Environment

Authors: Ronald Hilton, David Platt

13th Edition

1264100698, 9781264100699

More Books

Students also viewed these Accounting questions

Question

What is the difference between civil and criminal fraud trials?

Answered: 1 week ago