Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain Budgeted sales by product and in total for the coming month are shown below: Product White 48% Fragrant 20% $ 326,400 97,920 $ 228,480 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even - Fixed expenses + CM ratio- $224,120+ 0.52-$431,000 As shown by these data, net operating income is budgeted at $129,480 for the month and the estimated break-even sales is $431,000. Assume actual sales for the month total $680,000 as planned; however, actual sales by product are White, $217,600; Fragrant, $272,000, and Loonzain, $190,400. Loonzain 32% 100% $ 136,000 30% 108,800 70% $ 27,200 100% $217,600 80% 119,680 20% $ 97,920 Total 100% Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% $ 680,000 55% 326,400 45% 353,600 224,120 $ 129,480 100% 48% 52%

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain Budgeted sales by product and in total for the coming month are shown below: Product White 48% Fragrant 20% $ 326,400 97,920 $ 228,480 Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even - Fixed expenses + CM ratio- $224,120+ 0.52-$431,000 As shown by these data, net operating income is budgeted at $129,480 for the month and the estimated break-even sales is $431,000. Assume actual sales for the month total $680,000 as planned; however, actual sales by product are White, $217,600; Fragrant, $272,000, and Loonzain, $190,400. Loonzain 32% 100% $ 136,000 30% 108,800 70% $ 27,200 100% $217,600 80% 119,680 20% $ 97,920 Total 100% Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% $ 680,000 55% 326,400 45% 353,600 224,120 $ 129,480 100% 48% 52%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product Total hite 48X $ 312,000 93,00 Fragrant 20k Loonzaln Percentage of total sales Sales Varlable expenses Contribution nargin 100 $ 650, 000 312, e00 338, 000 224, 120 $ 113,00 $ 130,000 104,000 $ 26,000 32% $ 200,000 114,400 100% 100x 48% 100x 100 55% $218,400 20% $ 93,600 45X 52% Fixed expenses Net operating incone Dollar sales to break-even = Fixed expenses / CM ratio $224,120 / 052- $431,000 As shown by these data, net operating income is budgeted at $113,880 for the month and the estimated break-even sales is $431,000, Assume that actual sales for the month total S650.000 as planned; however, actual sales by product are: White, $208.000, Fragrant. $260,000, and Loonzain, $182.000. Required: 1. Prepare a contribution format income statement for the month…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin White 48% $ 292,800 87,840 $ 204,960 100% 30% 70% Fragrant 20% $ 122,000 97,600 $ 24,400 Product 100% 80% 20% Loonzain 32% $ 195,200 107,360 $ 87,840 100% 55% 45% Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Total 100% $ 610,000 292,800 317, 200 231,920 $ 85,280 100% 48% 52% Fixed expenses Net operating income Dollar sales to break-even Fixed expenses ÷ CM ratio = $231,920 ÷ 0.52 = $446,000 As shown by these data, net operating income is budgeted at $85,280 for the month and the estimated break-even sales is $446,000. Assume actual sales for the month…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 20% $ 150,000 108,000 $ 42,000 Fragrant 52% 100% $ 390,000 72% 28% $ 312,000 78,000 Required 1 Required 2 Product Loonzain 28% Complete this question by entering your answers in the tabs below. 100% $ 210,000 20% 84,000 80% $ 126,000 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% 40% 60% Tota 100% Dollar sales to break-even = Fixed expenses / CM ratio = $449,280 / 0.64 = $702,000 As shown by these data, net operating income is budgeted at $30,720 for the month and the estimated break-even sales is $702,000.…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin White 48% Required 1 Required 2 $ 292,800 87,840 $ 204,960 Percentage of total sales 100% 30% 70% Complete this question by entering your answers in the tabs below. White Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Product Fragrant 20% $ 122,000 97,600 $ 24,400 Prepare a contribution format income statement for the month based on the actual sales data. % Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses/CM ratio = $229,320/0.52 = $441,000 As shown by these data, net operating income is budgeted at $87,880 for the month…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales. Sales Variable expenses Contribution margin White 48% Required 11 $ 302,400 90,720 $ 211,680 Required 21 100% 30% 70% Fragrant 20% $ 126,000 100,800 $ 25,200 Product Loonzain 329 100% $ 201,600 80% 110,880 20% $ 90,720 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Complete this question by entering your answers in the tabs below. 100% 55% 45% Total 100% Fixed expenses Net operating income Dollar sales to break-even - Fixed expenses/CM ratio= $233,480/0.52-$449,000 As shown by these data, net operating income is budgeted at $94,120 for the month and the estimated break-even sales is $449,000.…
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales 48 % 20 % 32 % 100 % Sales $ 307,200 100 % $ 128,000 100 % $ 204,800 100 % $ 640,000 100 % Variable expenses 92,160 30 % 102,400 80 % 112,640 55 % 307,200 48 % Contribution margin $ 215,040 70 % $ 25,600 20 % $ 92,160 45 % 332,800 52 % Fixed expenses 227,760 Net operating income $ 105,040 Dollar sales to break-even = Fixed expenses = $227,760 = $438,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $105,040 for the month and the estimated break-even sales is $438,000. Assume that actual sales for the month…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales. Sales Variable expenses Contribution margin White 488 $ 355,200 106,560 $ 248,640 100% 30% 708 Fragrant 20% Required 1 Required 2 $ 148,000 118,400 $ 29,600 Product 100% 80% 20% Complete this question by entering your answers in the tabs below. Loonzain 328 $ 236,800 130,240 $ 106,560 Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. 100% 55% 458 Fixed expenses Net operating income Dollar sales to break-even = Fixed expenses / CM ratio = $226,720/0.52 = $436,000 As shown by these data, net operating income is budgeted at $158,080 for the month and the estimated break-even sales is $436,000. Total…
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income Dollar sales to break-even = White 48 % $ 302,400 90,720 $ 211,680 Fixed expenses CM ratio = 100 % 30 % 70 % $ $ $232,440 0.52 Fragrant 20 % 126,000 100, 800 25, 200 Product 100 % 80 % 20 % = $447,000 Loonzain 32 % $ 201,600 110,880 90,720 100 % 55 % 45 % Required: 1. Prepare a contribution format income statement for the month based on the actual sales data. 2. Compute the break-even point in dollar sales for the month based on your actual data. Total 100 % $ 630,000 302,400 327,600 232,440 95,160 $ 100 % 48 % 52 % As shown by these data, net operating income is budgeted at $95,160 for the month and the estimated break-even sales is $447,000. Assume that actual…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales 48% 20% 32% 100% Sales $ 336,000 100% $ 140,000 100% $ 224,000 100% $ 700,000 100% Variable expenses 100,800 30% 112,000 80% 123,200 55% 336,000 48% Contribution margin $ 235,200 70% $ 28,000 20% $ 100,800 45% 364,000 52% Fixed expenses 230,880 Net operating income $ 133,120 Dollar sales to break-even = Fixed expenses / CM ratio = $230,880 / 0.52 = $444,000 As shown by these data, net operating income is budgeted at $133,120 for the month and the estimated break-even sales is $444,000. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000; and Loonzain,…
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product Percentage of total sales Sales White 48% Fragrant 20% Loonzain 32% Total 100% Variable expenses $ 336,000 100,800 100% 30% $ 140,000 112,000 100% 80% $ 224,000 123,200 100% 55% $ 700,000 100% 336,000 48% Contribution margin Fixed expenses Net operating income $ 235,200 70% $ 28,000 20% $ 100,800 45% 364,000 52% 231,400 $ 132,600 Dollar sales to break-even = Fixed expenses / CM ratio = $231,400 / 0.52 = $445,000 As shown by these data, net operating income is budgeted at $132,600 for the month and the estimated break-even sales is $445,000. Assume that actual sales for the month total $700,000 as planned; however, actual sales by product are: White, $224,000; Fragrant, $280,000; and Loonzain, $196,000. Required: 1. Prepare a contribution format income…
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Product White Fragrant Loonzain Total Percentage of total sales 48 % 20 % 32 % 100 % Sales $ 374,400 100 % $ 156,000 100 % $ 249,600 100 % $ 780,000 100 % Variable expenses 112,320 30 % 124,800 80 % 137,280 55 % 374,400 48 % Contribution margin $ 262,080 70 % $ 31,200 20 % $ 112,320 45 % 405,600 52 % Fixed expenses 234,000 Net operating income $ 171,600 Dollar sales to break-even = Fixed expenses = $234,000 = $450,000 CM ratio 0.52 As shown by these data, net operating income is budgeted at $171,600 for the month and the estimated break-even sales is $450,000. Assume that actual sales for the…
Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: ProductWhite Fragrant Loonzain TotalPercentage of total sales 48 % 20 % 32 % 100 % Sales $ 350,400 100 % $ 146,000 100 % $ 233,600 100 % $ 730,000 100 %Variable expenses 105,120 30 % 116,800 80 % 128,480 55 % 350,400 48 %Contribution margin $ 245,280 70 % $ 29,200 20 % $ 105,120 45 % 379,600 52 %Fixed expenses 225,680 Net operating income $ 153,920 Dollar sales to break-even = Fixed expenses = $225,680 = $434,000CM ratio 0.52 As shown by these data, net operating income is budgeted at $153,920 for the month and the estimated break-even sales is $434,000. Assume that actual sales for the month total $730,000 as planned. Actual sales by product are: White, $233,600; Fragrant, $292,000; and Loonzain, $204,400. Required: 1. Prepare a contribution format income…