Snyder Brush Company sells standard hair brushes. The following information summarizes Snyders operating activities for 2012: Selling
Question:
Selling and administrative expenses . . . . . . . . . . $ 49,680
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Sales revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,000
Merchandise inventory, January 1, 2012 . . . . . . 7,500
Merchandise inventory, December 31, 2012 . . . . 12,360
Requirements
1. Prepare an income statement for 2012. Compute the ratio of operating expense to total revenue and operating income to total revenue.
2. Snyder sold 6,000 brushes in 2012. Compute the unit cost for one brush.
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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