Question
T he Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
Amount
Sales
$
219,300
Sales in units
215 pairs
Selling price per pair of skis
$
1,020
Variable selling expense per pair of skis
$
88
Variable administrative expense per pair of skis
$
15
Total fixed selling expense
$
33,000
Total fixed administrative expense
$
39,000
Beginning merchandise inventory
$
30,000
Ending merchandise inventory
$
40,000
Merchandise purchases
$
115,000
Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases End. Merch. Inventory. COGS is a variable expense.
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:
| Amount | |
Sales | $ | 219,300 |
Sales in units |
| 215 pairs |
Selling price per pair of skis | $ | 1,020 |
Variable selling expense per pair of skis | $ | 88 |
Variable administrative expense per pair of skis | $ | 15 |
Total fixed selling expense | $ | 33,000 |
Total fixed administrative expense | $ | 39,000 |
Beginning merchandise inventory | $ | 30,000 |
Ending merchandise inventory | $ | 40,000 |
Merchandise purchases | $ | 115,000 |
| ||
Note: to calculate COGS you will need to use the following equation: Beg. Merch. Inventory + Merch. Purchases End. Merch. Inventory. COGS is a variable expense.
Required:
1. Prepare a traditional income statement for the quarter ended March 31.
2. Prepare a contribution format income statement for the quarter ended March 31.
3. What was the contribution margin per unit?
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Financial Accounting
Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner
10th Edition
0072316373, 978-0072316377
