Ch1 Ws Student
Chapter 1 - Managerial Accounting and Cost Concepts
Exercise 1-5
1. Traditional income statement
Redhawk, Inc.
Traditional Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
2. Contribution format income statement
Redhawk, Inc.
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative expenses
Contribution margin
Fixed expenses:
Selling expenses
Administrative expenses
Net operating income
Exercise 1-11
1. Traditional income statement
Haaki Shop, Inc.
Traditional Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
2. Contribution format income statement
Haaki Shop, Inc.
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative expenses
Contribution margin
Fixed expenses:
Selling expenses
Administrative expenses
Net operating income
3. The contribution margin of each surfboard toward fixed expenses and profits =
Problem 1-21A
Cost Item
Variable or Fixed
Selling Cost
Adminis-trative Cost
Manufacturing (Product) Cost
Direct
Indirect
1.
Depreciation, executive jet
2.
Costs of shipping finished goods to customers
3.
Wood used in manufacturing furniture
4.
Sales manager’s salary
5.
Electricity used in manufacturing furniture
6.
Secretary to the company president
7.
Aerosol attachment placed on a spray can produced by the company
8.
Billing costs
9.
Packing supplies for shipping products overseas
10.
Sand used in manufacturing concrete
11.
Supervisor’s salary, factory
12.
Executive life insurance
Exercise 1-5
1. Traditional income statement
Redhawk, Inc.
Traditional Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
2. Contribution format income statement
Redhawk, Inc.
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative expenses
Contribution margin
Fixed expenses:
Selling expenses
Administrative expenses
Net operating income
Exercise 1-11
1. Traditional income statement
Haaki Shop, Inc.
Traditional Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
2. Contribution format income statement
Haaki Shop, Inc.
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative expenses
Contribution margin
Fixed expenses:
Selling expenses
Administrative expenses
Net operating income
3. The contribution margin of each surfboard toward fixed expenses and profits =
Problem 1-21A
Cost Item
Variable or Fixed
Selling Cost
Adminis-trative Cost
Manufacturing (Product) Cost
Direct
Indirect
1.
Depreciation, executive jet
2.
Costs of shipping finished goods to customers
3.
Wood used in manufacturing furniture
4.
Sales manager’s salary
5.
Electricity used in manufacturing furniture
6.
Secretary to the company president
7.
Aerosol attachment placed on a spray can produced by the company
8.
Billing costs
9.
Packing supplies for shipping products overseas
10.
Sand used in manufacturing concrete
11.
Supervisor’s salary, factory
12.
Executive life insurance