Wolsey Industries Inc. expects to maintain the same inventories at the end of 20
ID: 2466212 • Letter: W
Question
Wolsey Industries Inc. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
1
Estimated Fixed Cost
Estimated Variable Cost (per unit sold)
2
Production costs:
3
Direct materials
—
$29.00
4
Direct labor
—
38.00
5
Factory overhead
$200,000.00
20.00
6
Selling expenses:
7
Sales salaries and commissions
101,000.00
12.00
8
Advertising
44,000.00
—
9
Travel
8,000.00
—
10
Miscellaneous selling expense
7,800.00
1.00
11
Administrative expenses:
12
Office and officers’ salaries
143,000.00
—
13
Supplies
8,000.00
4.00
14
Miscellaneous administrative expense
13,200.00
1.00
15
Total
$525,000.00
$105.00
It is expected that 21,875 units will be sold at a price of $140 a unit. Maximum sales within the relevant range are 26,425 units.
Labels and Amount Descriptions
Income Statement
Shaded cells have feedback.
A. Prepare an estimated income statement for 2016. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Score: 100/152
Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 2016
1
?
?
2
3
?
?
4
?
?
5
?
?
6
?
7
?
?
8
9
Selling expenses:
10
?
11
12
?
13
?
14
?
15
Administrative expenses:
16
?
17
?
18
?
19
?
20
Total expenses
21
1
Estimated Fixed Cost
Estimated Variable Cost (per unit sold)
2
Production costs:
3
Direct materials
—
$29.00
4
Direct labor
—
38.00
5
Factory overhead
$200,000.00
20.00
6
Selling expenses:
7
Sales salaries and commissions
101,000.00
12.00
8
Advertising
44,000.00
—
9
Travel
8,000.00
—
10
Miscellaneous selling expense
7,800.00
1.00
11
Administrative expenses:
12
Office and officers’ salaries
143,000.00
—
13
Supplies
8,000.00
4.00
14
Miscellaneous administrative expense
13,200.00
1.00
15
Total
$525,000.00
$105.00
CengageNOWv2 | Online teaching and learning resource from Cerning - Google Chrome v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take; Chapter 21 Homework Set eBook Score: 104/152 Wolsey Industries Inc. Estimated Income Statement For the Year Ended December 31, 2016 1. EX21-9 2. EX.21-23 3. EX.21-22 4. EX.21-15 5. EX21-7 6. EX21-4 7. Pr.21-6.lgo 8. EX21-5 9. PR.21-4.ALGO Sales $3,062,500.00 2Cost of goods sold: Direct materials 4 Direct labon 5 Factory overhead 6Manufacturing margin $634,375.00 831,250.00 637,50000 2,103,125.00 ) | 7 Gross profit 959,375.00 8 Expenses 9 Selling expenses: 10Sales salaries and commissions 11 Advertising 101,000.00 40,000.00 12,000.00 29,475.00 Travel 15Miscellaneous selling expense 14Total selling expenses 15 Administrative expenses 16 Office and officers' salaries 17 Supplies 18Miscellaneous administrative expense 19 Total administrative expenses 20 Total expenses 21 Variable cost of goods sold $366,475.00 $132,000.00 97,500.00 35,275.00 Check My Work Previous Next Progress: 719 items Assignment Score: 93.42% Email InstructorSave and Exit Submit Assignment for Grading t O Ask me anything ENG 1:08 PM US 4/12/2016Explanation / Answer
Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 2016
Sales (21875 Units *$140) (A)
$3,062,500.00
Cost of Good sold:
Direct materials (21875 Units * $29)
$634,375.00
Direct labor (21875 Units * $38)
$831,250.00
Factory Overhead (21875 Units * $20) + $ 200000
$637,500.00
Total Cost of Good sold (B)
$2,103,125.00
Gross Profit (C) =A-B =
$ 959,375.00
Expenses:
Selling expenses:
Sales salaries and commissions (21875 Units * $12) + $ 101000
$363,500.00
Advertising
$ 44,000.00
Travel
$ 8,000.00
Miscellaneous selling expense (21875 Units * $1) + $ 7800
$ 29,675.00
Total Selling expenses (D)
$445,175.00
Administrative expenses:
Office and officers’ salaries
$143,000.00
Supplies (21875 Units * $4) + $ 8000
$ 95,500.00
Miscellaneous administrative expense (21875 Units * $1) + $ 13200
$ 35,075.00
Total Administrative expenses (E)
$273,575.00
Total Expenses (F) = D+E =
$ 718,750.00
Net income = C - F =
$ 240,625.00
Wolsey Industries Inc.
Estimated Income Statement
For the Year Ended December 31, 2016
Sales (21875 Units *$140) (A)
$3,062,500.00
Cost of Good sold:
Direct materials (21875 Units * $29)
$634,375.00
Direct labor (21875 Units * $38)
$831,250.00
Factory Overhead (21875 Units * $20) + $ 200000
$637,500.00
Total Cost of Good sold (B)
$2,103,125.00
Gross Profit (C) =A-B =
$ 959,375.00
Expenses:
Selling expenses:
Sales salaries and commissions (21875 Units * $12) + $ 101000
$363,500.00
Advertising
$ 44,000.00
Travel
$ 8,000.00
Miscellaneous selling expense (21875 Units * $1) + $ 7800
$ 29,675.00
Total Selling expenses (D)
$445,175.00
Administrative expenses:
Office and officers’ salaries
$143,000.00
Supplies (21875 Units * $4) + $ 8000
$ 95,500.00
Miscellaneous administrative expense (21875 Units * $1) + $ 13200
$ 35,075.00
Total Administrative expenses (E)
$273,575.00
Total Expenses (F) = D+E =
$ 718,750.00
Net income = C - F =
$ 240,625.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.