Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. marwicks pianos, incorporated, purchases pianos fr

Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,499...

90.2K

Verified Solution

Question

Accounting

Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,900 each. The companys selling and administrative costs for a typical month are presented below:

Costs Cost Formula
Selling:
Advertising $956 per month
Sales salaries and commissions $4,773 per month, plus 4% of sales
Delivery of pianos to customers $60 per piano sold
Utilities $640 per month
Depreciation of sales facilities $4,972 per month
Administrative:
Executive salaries $13,483 per month
Insurance $712 per month
Clerical $2,505 per month, plus $42 per piano sold
Depreciation of office equipment $907 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 60 pianos.

Required:

1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What skills do a CPA of the future should possess to besuccessful?explainWhat skills do...

Accounting
Q

For the question below, write an explanation of the short-run effect including the determinant of AD...

Economics
Q

How Managerial Accounting Practices support Strategy and Strategic Management ?

Accounting
Q

Choose the characteristics below that match with the pinkish (i.e., "in-between") color muscle fiber shown...

Biology
Q

Paramecium aurelia is an organism that can reproduce both sexually and asexually It does not...

Biology
Q

How might a scientist test this hypothesis Burning fossil fuels and releasing greenhouse gases is...

Biology
Q

Organization of Life Vecdalas Marching Match the correct word with its description of defrition I...

Biology
Q

Directions Find the value of each variable x y x y 7 X 45 60...

Geometry
Q

6 7 8 9 7 7 m 1 5 yd 5 8 m 6 m...

Geometry
Q

The accounting records of MJ6RING Company provided the data below. Net income 53,317 Depreciation expense...

Accounting
Q

The premium on a three-year insurance policy purchased on June 30, 2020, was $36,000. What...

Accounting
Q

True or False When calculating Joint Product Costs you can use the weighted average method...

Accounting