Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am clearly not doing this right. Help Please! Instructions Gorman Nurseries Inc. grows poinsettias and fruit trees in a green houseursery operation. The following

image text in transcribedimage text in transcribedimage text in transcribed

I am clearly not doing this right. Help Please!

Instructions Gorman Nurseries Inc. grows poinsettias and fruit trees in a green houseursery operation. The following information was provided for the coming year. Poinsettias Fruit Trees 970,000 $3,100,000 Sales Variable cost of goods sold Direct fixed overhead 60,0001,630,000 460,000 60,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. D rect fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Labels and Amount Descriptions Labels Add common fixed expenses Add direct fixed expenses Add variable expenses Less common fixed expenses Less direct fixed expenses Less variable expenses Amount Descriptions Common fixed overhead Common selling and administrative Contribution margin Direct fixed overhead Direct selling and administrative Operating loss Operating income Sales Segment margin Variable cost of goods sold Variable selling expense Score: 73/159 Gorman Nurseries Inc Segmented Income Statement For the Coming Year Poinsettias Fruit Trees Total $970,000.00$3,100,000.00$4,070,000.00 2 Sales 3Less v 4abe cost of goods sold 5Variable selling expense ariable expenses: 460,000.00 1,630,000.00 2,090,000.00 7Less direct fixed expenses: 8 Direct fixed overhead 9 Direct selling and administrative 10 Segment margin 11 Less common fixed expenses: 12 Common fixed overhead 13 Common slling and administrative 14 Operating loss 160,000.00 200,000.00 360,000.00

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

Introduction To Management Accounting With Myaccountinglab And

Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg, Dave Burgstahler

1st Edition

1292178116, 978-1292178110

More Books

Students also viewed these Accounting questions

Question

10. How is microblogging relevant to business communication?

Answered: 1 week ago