Dubai Company is a merchandiser that reported the following information based on 1,000 units sold. No. Transactions The
Posted: Sat Mar 19, 2022 5:46 pm
Dubai Company is a merchandiser that reported the following
information based on 1,000 units sold.
No.
Transactions
The Value
1.
Sales
$300,000
2.
Beginning merchandise inventory
$20,000
3.
Purchases
$200,000
4.
Ending merchandise inventory
$7,000
5.
Fixed selling expense
?? $30,000
6.
Fixed administrative expense
$12,000
7.
Variable selling expense
$15,000
8.
Variable administrative expense
?? $12,000
9.
Contribution margin
$60,000
10.
Net operating income
$18,000
Required: 1. Prepare a contribution format
income statement.
2. Prepare
a traditional format income statement.
information based on 1,000 units sold.
No.
Transactions
The Value
1.
Sales
$300,000
2.
Beginning merchandise inventory
$20,000
3.
Purchases
$200,000
4.
Ending merchandise inventory
$7,000
5.
Fixed selling expense
?? $30,000
6.
Fixed administrative expense
$12,000
7.
Variable selling expense
$15,000
8.
Variable administrative expense
?? $12,000
9.
Contribution margin
$60,000
10.
Net operating income
$18,000
Required: 1. Prepare a contribution format
income statement.
2. Prepare
a traditional format income statement.