Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hello, can someone please please help me with this management accounting question i would really appreciate it all the information is provided below i need

hello, can someone please please help me with this management accounting question i would really appreciate it all the information is provided below i need this as soon as possible as im struggling. thank you again

image text in transcribedimage text in transcribed

Western's accountant, Ms. Lasso, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: Fixed portion of the cost of goods sold for the quarter amounted to $1,214,000. . Of the selling expenses, 20% was variable with respect to the number of units. All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Y = X Cost of goods sold Selling expenses per quarter per quarter Y = X 2. Redo the above income statement using a contribution margin approach. (Do not round Intermediate calculations.) WESTERN COWBOYS INC. Income Statement For the First Quarter of this Year Less: Variable costs Less: Fixed expenses Western Cowboys Inc. prepared the following report for the first quarter of this year: $7,280,000 3,242,000 4,038,000 Sales (@ $2,900 per unit) Less: Cost of goods sold Gross margin Less : Selling expenses Administrative expenses Income $1,047,800 1,050,000 2,097,800 $1,940,200 Western's accountant, Ms. Lasso, studied the costs in detail, particularly focusing on cost behaviour. Her analysis revealed the following: Fixed portion of the cost of goods sold for the quarter amounted to $1,214,000. . Of the selling expenses, 20% was variable with respect to the number of units. All of the administrative expenses were fixed. Required: 1. Express the cost of goods sold and the selling expenses in terms of cost equations. (Round the "Variable cost" to 2 decimal places.) Y = Cost of goods sold Selling expenses per quarter per quarter Y = X 2. Redo the above income statement using a contribution margin approach. (Do not round Intermediate calculations.) WESTERN COWBOYS INC. Income Statement For the First Quarter of this Year Less: Variable costs Less: Fixed expenses

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

Financial Accounting

Authors: Walter B. Meigs, A. N. Mosich, Robert F. Meigs

2nd Edition

0070412901, 978-0070412903

More Books

Students also viewed these Accounting questions