just Requirements 2-7
URE OBV Violins-by - Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first month of operation. Ar month-end, 600 finished violins remained unsold. There was no inventory in work in process, Violins were sold for $112.50 each. Total costs from the month are as follows HD (Click on the icon to view the data) The company prepares traditional (absorption costing) income statements for its bankoms. Sarah would also like to prepare contribution margin income statements for management use Read the requirements - X Requirements Compute the following amounts Requirement 1. Gross Profit Identify the formula, then comput Compute the following amounts that would be shown on these income statements: 1. Gross Profit 2. Contribution Margin 3. Total expenses shown below the gross profit line 4. Total expenses shown below the contribution margin line 5. Dollar value of ending inventory under absorption costing 6. Dollar value of ending inventory under variable costing 7. Which income statement will have a higher operating income? By how much? Explain Sales S 168.750 Requirement 2. Contribution Ma Identify the formula, then comput Print Done Sales 5 168,750 lolins - by - Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first month of operations. At month-end, 500 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $112.50 each. Total costs from the month are as follows: (Click on the icon to view the data.) The company prepares traditional (absorption costing) income statements for its bankers Sarah would also like to prepare contribution margin income statements for management use. Read the requirements Data table Compute the following amounts that would be shown on these income statements: Requirement 1. Gross Profit 93.200 50.000 $ $ Identify the formula, then compute the gross profit Sales Cost of goods sold 168,750 $ 154,500 Direct materials used. Direct labor... Variable manufacturing overhead Fixed manufacturing overhead $ Variable selling and administrative expenses .. Fixed selling and administrative expenses Gross profit 29,000 44.100 7,000 12,700 s $ 14.250 $ Requirement 2. Contribution Margin Identify the formula, then compute the contribution margin Sales Print Done Variable costs 117400 = Contribute 3 | 51350 168.750 Violins - by - Sarah produces student-grade violins for beginning violin students. The company produced 2,100 violins in its first month of operations Ar month-end, 600 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $112.50 each. Total costs from the month are as follows: Click on the icon to view the data) The company propares tra income monts for management uso. Read the requirements Requirements Compute the following am Requirement 1. Gross PH Identify the formula, then Salos Compute the following amounts that would be shown on those income statements 1. Gross Profit 2. Contribution Margin 3. Total expenses shown below the gross profit line 4. Total expenses shown below the contribution margin line 5. Dollar value of ending inventory under absorption costing 6. Dollar value of ending inventory under variable costing 7. Which income statement will have a higher operating income? By how much? Explain $ 168.750 Print Dono Requirement 2. Contribu Sentify the formula, then Sales 117400 51350 168,750
