Section 2

Barbecue Industries produces two products, Barbecue sauce and Barbecue seasoning. Information relating to the products for October is as follows:

Barbecue Sauce

Barbecue Seasoning

Units produced and sold

20,000

25,000

Selling price per unit

$15

$10

Variable expenses per unit

$8

$4

Direct fixed expenses by product

Barbecue Sauce

$60,000

Barbecue Seasoning

$120,000

Common Fixed Expenses

$150,000

Required:

1. Design a segmented income statement showing the 2 product costs and a company total column. The segmented income statement should be developed to assist management in the decision making of questions listed in 2-4 below.

Use only cell references for #1 to develop your numeric part of the segmented income statement.

Barbecue Industries

Segmented Income Statement

For the Month Ended October 31, 2018