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gameranonymous266
01.10.2019 •
Business
The following income statement items appeared on the adjusted trial balance of schembri manufacturing corporation for the year ended december 31, 2016 ($ in 000s): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $85; interest expense, $180. income taxes have not yet been recorded. the company’s income tax rate is 40% on all items of income or loss. these revenue and expense items appear in the company’s income statement every year. the company’s controller, however, has asked for your in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2016 ($ in 000s). all transactions are material in amount.1. investments were sold during the year at a loss of $220. schembri also had unrealized gains of $320 for the year on investments.2. one of the company’s factories was closed during the year. restructuring costs incurred were $1,200.3. during the year, schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to gaap. the division had incurred a loss from operations of $560 in 2016 prior to the sale, and its assets were sold at a gain of $1,400. 4. in 2016, the company’s accountant discovered that depreciation expense in 2015 for the office building was understated by $200.5. foreign currency translation losses for the year totaled $240.required: 1. prepare schembri’s single, continuous multiple-step statement of comprehensive income for 2016, including basic earnings per share disclosures. one million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on july 1, 2016. (amounts to be deducted should be indicated with a minus sign. enter your answers in thousands. round eps answers to 2 decimal places.) 2. prepare a separate statement of comprehensive income for 2016. (amounts to be deducted should be indicated with a minus sign. enter your answers in thousands.)
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Ответ:
Net operating income= 11,600
Explanation:
Giving the following information:
Selling price $118
Variable costs per unit:
Direct materials $37
Direct labor $23
Variable manufacturing overhead $3
Variable selling and administrative expense $5
Fixed costs:
Fixed manufacturing overhead $73,500
Fixed selling and administrative expense $29,900
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
First, we need to calculate the total variable cost per unit:
Total variable cost per unit= 37 + 23 + 3 + 5= $68
Income statement:
Sales= 118*2,300= 271,400
Total variable cost= 68*2,300= (156,400)
Total contribution margin= 115,000
Fixed manufacturing overhead= (73,500)
Fixed selling and administrative expense= (29,900)
Net operating income= 11,600