Fanelli Corporation, a merchandlsing compeny, reported the following results for

Question

Fanelli Corporation, a merchandlsing compeny, reported the following results for July Number of unite sold Selling price per unit Unit cost of goods sold Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense 6,800 610 S 420 64 126,300 32 $208,200 Cost of goods sold is a variable cost in this company Required: a. Prepare a traditional format Income statement for July b. Prepare a contribution format income statement for July. Complete this question by entering your answers in the tabs below Required A Required B Prepare a traditional format income statement for July. Fanel For the month of July Income Selling and administrative expenses Required &

Explanation / Answer

Answer:

(1)

Fanelll corporation

For the month of July

Traditional Income Statement

Amount $

Amount $

Sales (600 * $ 610)

4148000

Cost of Goods Sold (6800*420)

2856000

Gross Profit

1292000

Selling & Administrative Expenses

Fixed Administrative Expenses

208200

Variable Administrative Expenses (6800 * $ 32)

217600

Fixed Selling Expenses

126300

Variable Selling Expenses (6800 * $ 64)

435200

Total Selling & Administrative Expenses

987300

Net Income

304700

____________________________________________

(2)

Fanelll corporation

For the month of July

Income Statement

Contribution Format

Sales (600 * $ 610)

4148000

Less : Variable Cost

Cost of Goods Sold (6800*420)

2856000

Variable Administrative Expenses (6800 * $ 32)

217600

Variable Selling Expenses (6800 * $ 64)

435200

Total Variable Cost

3508800

Contribution Margin

639200

Less : Fixed Cost   

Fixed Administrative Expenses

208200

Fixed Selling Expenses

126300

Total Fixed Cost   

334500

Net Income

304700

Fanelll corporation

For the month of July

Traditional Income Statement

Amount $

Amount $

Sales (600 * $ 610)

4148000

Cost of Goods Sold (6800*420)

2856000

Gross Profit

1292000

Selling & Administrative Expenses

Fixed Administrative Expenses

208200

Variable Administrative Expenses (6800 * $ 32)

217600

Fixed Selling Expenses

126300

Variable Selling Expenses (6800 * $ 64)

435200

Total Selling & Administrative Expenses

987300

Net Income

304700

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.