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 Total sales revenue $ 1,271,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 50 Variable administrative expense per pair of skis $ 16 Total fixed selling expense $ 130,000 Total fixed administrative expense $ 130,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 105,000 Merchandise purchases $ 290,000
Required: 1. Prepare a traditional income statement for the quarter ended March 31.
The Alpine House, Inc. Traditional Income Statement Fixed manufacturing overhead $(245,000) Variable manufacturing overhead (195,300) Gross margin Selling and administrative expenses: 0
2. Prepare a contribution format income statement for the quarter ended March 31.
The Alpine House, Inc. Contribution Format Income Statement Variable expenses: 0 Fixed expenses: 0
3. What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.)
| 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 | ||
| Total sales revenue | $ | 1,271,000 |
| Selling price per pair of skis | $ | 410 |
| Variable selling expense per pair of skis | $ | 50 |
| Variable administrative expense per pair of skis | $ | 16 |
| Total fixed selling expense | $ | 130,000 |
| Total fixed administrative expense | $ | 130,000 |
| Beginning merchandise inventory | $ | 75,000 |
| Ending merchandise inventory | $ | 105,000 |
| Merchandise purchases | $ | 290,000 |
| Required: | |
| 1. | Prepare a traditional income statement for the quarter ended March 31. |
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| 2. | Prepare a contribution format income statement for the quarter ended March 31. | |||||||||||||||||||||||||||||||||||||||||||||||||||
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| 3. | What was the contribution toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.) |
Related questions
Exercise 2-13 Traditional and Contribution Format Income Statements [LO2-6]
| 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 | ||
| Total sales revenue | $ | 150,000 |
| Selling price per pair of skis | $ | 750 |
| Variable selling expense per pair of skis | $ | 50 |
| Variable administrative expense per pair of skis | $ | 10 |
| Total fixed selling expense | $ | 20,000 |
| Total fixed administrative expense | $ | 20,000 |
| Beginning merchandise inventory | $ | 30,000 |
| Ending merchandise inventory | $ | 40,000 |
| Merchandise purchases | $ | 100,000 |
| 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 toward fixed expenses and profits for each pair of skis sold during the quarter? (Round your final answer to nearest whole dollar amount.) |
The Alpine House, Inc., is a large retailer of snow skis. Thecompany assembled the information shown below for the quarter endedMarch 31: |
| Amount | ||
| Total salesrevenue | $ | 1,271,000 |
| Selling price perpair of skis | $ | 410 |
| Variable sellingexpense per pair of skis | $ | 46 |
| Variableadministrative expense per pair of skis | $ | 17 |
| Total fixed sellingexpense | $ | 155,000 |
| Total fixedadministrative expense | $ | 105,000 |
| Beginning merchandiseinventory | $ | 65,000 |
| Ending merchandiseinventory | $ | 105,000 |
| Merchandisepurchases | $ | 285,000 |
| Required: | |
| 1. | Prepare a traditional income statement for the quarter endedMarch 31. |
| 2. | Prepare a contribution format income statement for the quarterended March 31. |
| 3. | What was the contribution toward fixed expenses and profits foreach pair of skis sold during the quarter? (Round yourfinal answer to nearest whole dollar amount.) |
