ACCT 203 Chapter Notes - Chapter 13: Earnings Before Interest And Taxes, Gross Margin, Income Statement

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brownduck883

25 May 2018

School

George Mason University

Department

Accounting

Course

ACCT 203

Professor

Harley

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ACCT 203 GMU Chapter 13 review

traditional format income statement

sales

cost of goods sold

gross margin

selling

administrative

Net Income

contribution format

sales

variable expenses

contribution margin

fixed expenses

net operating income.

cost of goods sold

beginning Inventory

+purchases

-ending inventory

contribution margin

the amount remaining from sales revenue after variable expenses have been

deducted.

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Document Summary

Acct 203 gmu chapter 13 review traditional format income statement sales cost of goods sold gross margin selling administrative. Net income contribution format sales variable expenses contribution margin fixed expenses net operating income. cost of goods sold beginning inventory. Ending inventory contribution margin the amount remaining from sales revenue after variable expenses have been deducted. differential cost a difference in costs between two alternatives differential revenue difference in revenue between two alternatives. Enterprise risk management a process used by a company to identify its risks and develop responses lean production a management approach that organizes resources based on customer orders. seven key differences of managerial and financial accounting. Verifiable vs reference precision vs timeliness subject rules requirement. Users (key difference between financial and managerial accounting) Users for financial are external people making financial descisions. Users for managerial are managers who plan and control an organization.

Related Questions

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:


Sales	$	270,000
Beginning merchandise inventory	$	18,000
Purchases	$	180,000
Ending merchandise inventory	$	9,000
Fixed selling expense	$	?
Fixed administrative expense	$	10,800
Variable selling expense	$	13,500
Variable administrative expense	$	?
Contribution margin	$	54,000
Net operating income	$	16,200

2. Prepare a traditional format income statement.

Todrick Company
Traditional Income Statement
Sales
Cost of goods sold
Gross margin		0
Selling and administrative expenses:
Selling expense
Administrative expense

		0
Net operating income

scarletmarten695

Plyler Enterprises sells garage doors in Erie, PA and hasprovided the following information:

# of unitssold 15,000

Average sellingprice $25per unit

Variable sellingexpense $5per unit

Variable administrativeexpense $2.50per unit

Fixed sellingexpenses $50,000

Fixed Administrativeexpenses $30,000

Inventory atbeginning $32,000

Inventory atend $50,000

Inventorypurchases $152,000

1. Provide the figures for the TRADITIONAL income statementbelow for Plyler Enterprises (ignore taxes):

Account	Amount	Show Calculations
Sales
Cost of goods sold
Gross margin		Sales less cost of goods sold
Selling expenses
Administrative expenses
Net operating income		Gross margin less Selling and Administrative

2. Provide the figures for the CONTRIBUTION FORMAT incomestatement below for Plyler Enterprises (ignore taxes):

Account	Amount	Show Calculations
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative exp.
Contribution margin		Sales less variable expenses
Fixed expenses:
Selling expenses
Administrative exp.
Net operating income		Sales less variable and fixed expenses

coralleopard451

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:


Sales	$	270,000
Beginning merchandise inventory	$	18,000
Purchases	$	180,000
Ending merchandise inventory	$	9,000
Fixed selling expense	$	?
Fixed administrative expense	$	10,800
Variable selling expense	$	13,500
Variable administrative expense	$	?
Contribution margin	$	54,000
Net operating income	$	16,200

Required:

1. Prepare a contribution format income statement.

Todrick Company
Contribution Format Income Statement

Variable expenses:
	$0



		0

Fixed expenses:



		0

scarletgoose537

ACCT 203 Chapter Notes - Chapter 13: Earnings Before Interest And Taxes, Gross Margin, Income Statement

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