Plyler Enterprises sells garage doors in Erie, PA and has provided the following information: # of units sold                                     15,000 Average...

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Accounting

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

Answer & Explanation Solved by verified expert
3.8 Ratings (389 Votes)
Working for Cost of Goods Sold Inventory at beginning 3200000 Inventory Purchases 15200000 Inventory at end 5000000 Cost of Goods Sold 13400000 Requirement 1 Account Amount Show    See Answer
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Plyler Enterprises sells garage doors in Erie, PA and hasprovided the following information:# of unitssold                                     15,000Average sellingprice                          $25per unitVariable sellingexpense                     $5per unitVariable administrativeexpense         $2.50per unitFixed sellingexpenses                        $50,000Fixed Administrativeexpenses          $30,000Inventory atbeginning                        $32,000Inventory atend                                  $50,000Inventorypurchases                            $152,0001. Provide the figures for the TRADITIONAL income statementbelow for Plyler Enterprises (ignore taxes):AccountAmountShow CalculationsSalesCost of goods soldGross marginSales less cost of goods soldSelling expensesAdministrative expensesNet operating incomeGross margin less Selling and Administrative2. Provide the figures for the CONTRIBUTION FORMAT incomestatement below for Plyler Enterprises (ignore taxes):AccountAmountShow CalculationsSalesVariable expenses:     Cost of goods sold     Selling expenses     Administrative exp.Contribution marginSales less variable expensesFixed expenses:     Selling expenses     Administrative exp.Net operating incomeSales less variable and fixed expenses

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