Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help fill in the blue blank boxes so far I chose the correct terms, please explain and show how to find the numbers and

image text in transcribedimage text in transcribedimage text in transcribed

Please help fill in the blue blank boxes so far I chose the correct terms, please explain and show how to find the numbers and what it is asking for? Thank you

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,300 each. The company's selling and administrative costs for a typical month are presented below: During August, Marwick's Pianos, Incorporated, sold and delivered 58 pianos. Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Marwick's Pianos, Incorporated } \\ \hline \multicolumn{1}{|c|}{ Traditional Income Statement } \\ \hline Sales & & \\ \hline Cost of goods sold & & \\ \hline Gross margin & & \\ \hline Selling and administrative expenses: & & \\ \hline Selling expenses: & & \\ \hline Advertising & & \\ \hline Sales salaries and commissions & & \\ \hline \hline Delivery of pianos & & \\ \hline Utilities & & \\ \hline Depreciation of sales facilities & & \\ \hline \hline \end{tabular} Marwick's Pianos, Incorporated \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Contribution Format Income Statement } \\ \hline For the Month of August & & Potal Piano \\ \hline Sales & & \\ \hline Variable expenses: & & \\ \hline Cost of goods sold & & \\ \hline Sales salaries and commissions & & \\ \hline Delivery of pianos & & \\ \hline Clerical & & \\ \hline & & \\ \hline Total variable expenses & & \\ \hline Contribution margin & & \\ \hline Fixed expenses: & & \\ \hline Advertising & & \\ \hline Sales salaries and commissions & & \\ \hline Utilities & & \\ \hline Depreciation of sales facilities & \\ \hline \hline Executive salaries & & \\ \hline \hline Insurance & & \\ \hline \hline Clerical & & \\ \hline \hline \end{tabular}

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_2

Step: 3

blur-text-image_3

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

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062

More Books

Students also viewed these Accounting questions