Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,000

House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,000 each. The average cost of an organ from the manufacturer is $1,508. The costs that the company incurs in a typical month are presented below:

Costs Cost Formula
Selling:
Advertising $962 per month
Delivery of organs $57 per organ sold
Sales salaries and commissions $4,783 per month, plus 5% of sales
Utilities $639 per month
Depreciation of sales facilities $5,098 per month
Administrative:
Executive salaries $13,481 per month
Depreciation of office equipment $890 per month
Clerical $2,550 per month, plus $41 per organ sold
Insurance $718 per month

During November, the company sold and delivered 60 organs.

Prepare a traditional income statement for November.

Prepare a contribution format income statement for November.

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

Ethics And Auditing

Authors: Tom Campbell, Keith Houghton

1st Edition

1920942254, 978-1920942250

More Books

Students also viewed these Accounting questions

Question

It can place a financial burden on families and the public.

Answered: 1 week ago