Question 5:

Peninsula Garden Centres Inc. produces tomato plants and vines in a greenhouseursery operation. The following information was provided for the coming year. Tomatoes Vines $3,500,000 Sales Variable cost of goods sold Direct fixed overhead $1,400,000 480,000 270,000 1,300,000 220,000 A sales commission of 4 percent of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $135,000 for the tomato plants and $84,000 for the vines. Common fixed overhead for the nursery operation was estimated to be $1,350,000; common selling and administrative expense was estimated to be $410,000. Required: Prepare a segmented income statement for Peninsula Garden Centres Inc. for the coming year, using variable costing. Required: Prepare a segmented income statement for Peninsula Garden Centres Inc. for the coming year, using variable costing. Peninsula Garden Centres Inc. Segmented Income Statement For the Coming Year Tomatoes Vines Total Less direct fixed expenses: Less common fixed expenses