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Crispin Company

Traditional Format Income Statement

Sales $$8,000,000$

Cost of goods sold $$5,974,000$

Gross margin $$2,026,000$

Selling and administrative expenses:

Selling $$1,000,000$

Administrative $$216,000$ $$1,216,000$

Net operating income $$810,000$

C

rispin Company

Contribution Format Income Statement

Sales $$8,000,000$

Variable expenses:

Cost of goods sold $$3,753,000$

Variable selling $$480,000$

Variable administrative $$2,000$ $$4,235,000$

Contribution margin $$3,765,000$

Fixed expenses:

Fixed manufacturnig overhead $$2,221,000$

Fixed selling $$520,000$

Fixed administrative $$214,000$ $$2,955,000$

Net operating income $$810,000$

Crispin Company$$s sales from last year were $$8$ million. The company maintains no beginning or ending inventories. It has assembled all of its costs from last year and would like your assistance in sorting these costs into various categories, depicting them graphically, and preparing traditional and contribution format income statements.

Calculate the companys total product cost

Calculate the total period cost

Cost Classifications:

Account Amount Product $/$ Period "Manufacturing $/$

Nonmanufacturing" Fixed $/$ Variable

Equipment depreciation: Molding $$400,000$ Product MOH Fixed

Equipment depreciation: Fabrication $$300,000$ Product MOH Fixed

Equipment depreciation: Assembly $$50,000$ Product MOH Fixed

Equipment depreciation: Materials Handling $$15,000$ Product MOH Fixed

Equipment depreciation: Other $$10,000$ Product MOH Fixed

Production suprvision: Molding $$60,000$ Product MOH Fixed

Production supervision: Fabrication $$65,000$ Product MOH Fixed

Production supervision: Assembly $$58,000$ Product MOH Fixed

Indirect labor: Maintenance & Repairs $$72,000$ Product MOH Fixed

Indirect labor: Materials Handling $$68,000$ Product MOH Fixed

Indirect labor: Engineering $$170,000$ Product MOH Fixed

Indirect labor: Raw Materials Purchasing $$93,000$ Product MOH Fixed

Indirect labor: Quality Control $$38,000$ Product MOH Fixed

Indirect labor: Packaging & Shipping $$99,000$ Product MOH Fixed

Indirect materials: Molding $$18,000$ Product MOH Variable

Indirect materials: Fabrication $$13,000$ Product MOH Variable

Indirect materials: Assembly $$8,000$ Product MOH Variable

Utilities: Molding $$24,000$ Product MOH Variable

Utilities: Fabrication $$20,000$ Product MOH Variable

Utilities: Assembly $$6,000$ Product MOH Variable

Utiltiies: Plant lighting and other equipment $$12,000$ Product MOH Fixed

Utilities: Heating and cooling $$24,000$ Product MOH Fixed

Property insurance $$26,000$ Product MOH Fixed

Liability insurance $$18,000$ Product MOH Fixed

Medical insurance $$45,000$ Product MOH Fixed

Workers' compensation insurance $$13,000$ Product MOH Fixed

Other salaries: Plant manager $$165,000$ Product MOH Fixed

Other salaries: Accounting $$89,000$ Product MOH Fixed

Other salaries: Administrative support $$56,000$ Product MOH Fixed

Other salaries: Janitorial $$48,000$ Product MOH Fixed

Other salaries: Security and grounds maintenance $$44,000$ Product MOH Fixed

Property taxes $$18,000$ Product MOH Fixed

Payroll taxes: Direct labor $$79,000$ Product MOH Variable

Payroll taxes: Other $$165,000$ Product MOH Fixed

Direct materials $$2,220,000$ Product Direct materials Variable

Direct labor $$1,365,000$ Product Direct labor Variable

Accounting manager's salary $$88,000$ Period Administrative Fixed

Administrative office insurance $$2,000$ Period Administrative Fixed

Advertising $$400,000$ Period Selling Fixed

Depreciation on office equipment $$15,000$ Period Administrative Fixed

Heat & electricity for the general office $$4,000$ Period Administrative Fixed

Janitorial services for administrative offices $$26,000$ Period Administrative Fixed

Salaries of accounts receivable$/$payable clerks $$78,000$ Period Administrative Fixed

Sales commissions $$480,000$ Period Selling Variable

Sales manager's salary $$120,000$ Period Selling Fixed

Supplies for administrative office $$1,000$ Period Administrative Fixed

Customer billing supplies $$2,000$ Period Administrative Variable

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