Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please could you help me with that, just please refer to use only the account option of the box charts. In August, Clarey Corporation, a

Please could you help me with that, just please refer to use only the account option of the box charts.

In August, Clarey Corporation, a manufacturing company, reported the following financial data:
Sales $ 262,000
Variable production expense $ 38,000
Fixed production expense $ 33,000
Variable selling expense $ 24,000
Fixed selling expense $ 42,000
Variable administrative expense $ 24,000
Fixed administrative expense $ 59,000
The company had no beginning or ending inventories.
Required:
a. Prepare an income statement in good form for August using the traditional approach. (Input all amounts as positive values. Omit the "$" sign in your response.)
Clarey Corporation Income Statement
(Click to select)Variable selling expenseFixed production expenseSalesVariable production expenseCost of goods sold $
(Click to select)Variable selling expenseVariable production expenseCost of goods soldSalesFixed production expense
(Click to select)Gross marginGross loss
Selling and administrative expenses:
Selling $
Administrative
(Click to select)Net operating incomeNet operating loss $
b. Prepare an income statement in good form for August using the contribution approach. (Input all amounts as positive values. Omit the "$" sign in your response.)

Clarey Corporation Income Statement

(Click to select)Cost of goods soldFixed production expenseSalesVariable selling expenseVariable production expense $
Variable expenses:
(Click to select)Variable production expenseCost of goods soldVariable administrative expenseSalesVariable selling expense $
(Click to select)Variable administrative expenseSalesVariable production expenseVariable selling expenseCost of goods sold
(Click to select)SalesVariable production expenseVariable administrative expenseVariable selling expenseCost of goods sold
(Click to select)Contribution lossContribution margin
Fixed expenses:
(Click to select)Cost of goods soldFixed administrative expenseFixed production expensesalesFixed selling expense
(Click to select)salesCost of goods soldFixed selling expenseFixed production expenseFixed administrative expense
(Click to select)salesFixed production expenseCost of goods soldFixed administrative expenseFixed selling expense
(Click to select)Net operating incomeNet operating loss $

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

Audit Guide Government Auditing Standards And Single Audits

Authors: AICPA

1st Edition

1945498447, 978-1945498442

More Books

Students also viewed these Accounting questions