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*** PLEASE SOLVE FOR SCOOTER, LAWN MOWER, AND HAND TOOL PARTS.*** Scooter Lawn Mower Hand Tool Parts Parts Parts $ 125,000 $ 8,400 105,000 $
***PLEASE SOLVE FOR SCOOTER, LAWN MOWER, AND HAND TOOL PARTS.***
Scooter Lawn Mower Hand Tool Parts Parts Parts $ 125,000 $ 8,400 105,000 $ 2,150 90,000 1,200 Purchase cost of parts assembled Machine hours Weight of parts shipped to distributors (kilograms) Sales commissions per unit Units assembled and sold 260,000 180,000 4.30 $ $ 0.85 $ 110,000 0.35 58,000 5.70 5,000 68.00 $ 20,000 15.00 $ Sales price per unit Boise Tool Co. is a supplier that assembles purchased parts into components for three distinct markets-scooter parts, lawn mower parts, and hand tool parts. Following is the statement of operating income for the most recent period: E: (Click the icon to view the statement of operating income.) Boise Tool uses a traditional cost accounting system. Operating data used in the cost accounting system are as follows: E (Click the icon to view the operating data.) Requirement 1. You have been asked to determine operating income (loss) for each product line. (Round the distribution cost per kilogram to the nearest cent and all other amounts to the nearest dollar.) Boise Tool: Statement of Operating Income Total Sales $ 970,600 Cost of goods sold Direct material 320,000 Indirect production (allocated based on 82,250 402,250 machine hours) Gross profit Selling and administrative expenses: $ 568,350 Commissions 58,800 Distribution to warehouses (allocated based on 82,500 141,300 weight in kilograms) Selling and administrative expenses: Commissions Distribution to warehouses (allocated based on 58,800 82,500 141,300 weight in kilograms) 427,050 Income before unallocated expenses Unallocated expenses Corporate salaries 9,000 13,000 22,000 Other general expenses $ 405,050 Operating income before taxes Scooter Total Parts Sales $ 970,600 | Cost of goods sold: Direct material $ 320,000 82,250 Indirect production Total cost of goods sold 402,250 $ 568.350 $ 568,350 Gross profit Selling and administrative expenses: Commissions 58,800 82,500 Distribution to warehouses 141,300 Total selling and administrative expenses Contribution to corporate expenses and profit Corporate expenses (unallocated): 427,050Step by Step Solution
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