1. In April, Holderness Inc, a merchandising company, had sales of $316,000, selling expenses of $23,500, and administrative expenses of $34,500. The cost of merchandise purchased during the month was $174,000. The beginning balance in the merchandise inventory account was $43,500 and the ending balance was $57,500.

Required:

Prepare a traditional format income statement for April.

2. Learned Corporation has provided the following information: 

Cost per Unit Cost per Period Direct materials $ 5.20 

Direct labor $ 3.70 

Variable manufacturing overhead $ 1.30 

Fixed manufacturing overhead $ 33,750 

Sales commissions $ 0.60 

Variable administrative expense $ 0.50 

Fixed selling and administrative expense $ 11,250 

Required: 

For financial reporting purposes, what is the total amount of product costs incurred to make 7,500 units.

Answer rating: 100% (QA)

Income Statement Sales 316000 Cost of goods sold Beginning merchan... View the full answer