Cambridge Tool Co. is a supplier that assembles purchased parts into components for three distinct marketsscooter parts, lawn mower parts,

Cambridge Tool Co. is a supplier that assembles purchased parts into components for three distinct markets—scooter parts, lawn mower parts, and hand tool parts. Following is the statement of operating income for the most recent period:

Cambridge Tool uses a traditional cost accounting system. Operating data used in the cost accounting system are as follows:

You have been asked to determine operating income (loss) for each product line. Use a format similar to Exhibit 4-3 on p.130.

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Cambridge Tool: Statement of Operating Income Total Sales Cost of goods sold Direct material Indirect production (allocated based on machine hours) Gross profit Selling and administrative expenses S1,221,5x0 $410,000 60,000 470,000 751,500 Commissions 73,900 Distribution to warehouses (allocated based on weight in kilograms) 135,000208.900 Income before unallocated expenses 542,600 Unallocated expenses Corporate salaries Other general expenses 10,000 17,000 27,000 Operating income before taxes S 515.600 Scooter Parts Lawn Mower Parts Hand lool Parts Purchase Machine hours Weight of parts shipped to distributors cost of parts assembled $145,000 $175,000 $90,000 8,950 ,650 1,400 60,000 505,000 110,000 (kilograms) Sales commissions per unit Units assembled and sold Sales price per uni $4.30 7,000 $ 80.00 $ 1.00 21,000 S 16.30 $ 0.40 57,000 S 5.60