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Is anyone good with accounting?

Discussion in 'Off-Topic Discussion' started by Mike8016, Feb 1, 2012.

  1. Feb 1, 2012 at 4:40 PM
    #1
    Mike8016

    Mike8016 [OP] Well-Known Member

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    I have accounting homework and cant figure out how to solve this. If anyone knows how to can you please help. Thanks
    Nikkel Corporation, a merchandising company, reported the following results for July:

    Sales


    $402,800

    Cost of goods sold (all variable)


    $169,100

    Total variable selling expense


    $17,100

    Total fixed selling expense


    $14,200

    Total variable administrative expense


    $7,600

    Total fixed administrative expense


    $30,100

    Prepare a traditional format income statement. What is net income?
    Prepare a contribution format income statement. What is the contribution margin
    Prepare a contribution format income statement. What are the total fixed costs
    Prepare a contribution format income statement. What is the net income
     
  2. Feb 1, 2012 at 4:51 PM
    #2
    Tacomada

    Tacomada Well-Known Member

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    Fun, i can do this one for ya...

    I can do the second part, but since this is homework.. and pretty basic stuff i'll let ya stew a bit first. If you can at least tell me the total fixed costs, and net income for the contribution margin income statement i'll help you with the formatting. No need to prepare the statements to get those numbers.
     
  3. Feb 1, 2012 at 4:56 PM
    #3
    Tacomada

    Tacomada Well-Known Member

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    Nikkel Corporation
    Traditional format income statement
    For the year ended July 31, 20xx

    sales 402,800
    Les Cost of sales 169,100
    ------------
    Gross profit 233,700

    Less espenses
    Var selling 17100
    Fixed selling 14200
    var Admin 7600
    fixed admin 30100 69,000
    --------------------------
    Net income (before tax) 164,700
     
  4. Feb 1, 2012 at 5:06 PM
    #4
    Mike8016

    Mike8016 [OP] Well-Known Member

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    Thanks for the help. I should be able to figure it out my self. Thanks again.
     
  5. Feb 1, 2012 at 5:36 PM
    #5
    Mike8016

    Mike8016 [OP] Well-Known Member

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    So i was able to figure out the total fixed cost which is 44300. How do i set it up to find the contribution margin?
     
  6. Feb 1, 2012 at 5:41 PM
    #6
    fletch aka

    fletch aka www.BeLikeBrit.org

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  7. Feb 1, 2012 at 5:41 PM
    #7
    blackhawke88

    blackhawke88 wo ai ni bao bei ^_^

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    Google says contribution margin = Revenue - Variable Costs

    so take revenue, minus COGS and variable operating expenses and you have Contribution margin, so I think
     
  8. Feb 1, 2012 at 10:59 PM
    #8
    Tacomada

    Tacomada Well-Known Member

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    ]Nikkel Corporation
    Contribution format income statement
    For the year ended July 31, 20xx

    sales 402,800
    Less Variable manufacturing expenses 169,100
    -----------
    Gross contribution margin 233,700
    Less variable selling and admin 24,700
    ----------
    Contribution margin 209,000

    Less fixed costs:
    Selling 14,200
    Admin 30,100 44,300
    ------------------------------
    Net income (before taxes) 164,700
     
  9. Feb 1, 2012 at 11:05 PM
    #9
    Tacomada

    Tacomada Well-Known Member

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    Sorry, got a little caught up this afternoon. There are actually two contribution margins gross and for lack of a better word regular.

    I should probably have called the 169100 cost of sales since this is a merchandising company and not a manufacturing co...

    Hawk had it right, don't margin is sales less all variable costs. Bottom line (net income) doesn't change regardless of form.

    Hope this all helped...
     
  10. Feb 1, 2012 at 11:36 PM
    #10
    Tigahshark

    Tigahshark Senior NEWBIE

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  11. Feb 2, 2012 at 9:59 AM
    #11
    Mike8016

    Mike8016 [OP] Well-Known Member

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    Thanks for All the help you guys. Really appreicate it. I am horrible at accounting. I am only doing this class for my Business Degree.
     
  12. Feb 2, 2012 at 10:32 AM
    #12
    blackhawke88

    blackhawke88 wo ai ni bao bei ^_^

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    A business degree is worthless without a sound understanding of the fundamentals of accounting and corporate finance.

    Pay attention to your accounting classes and you will impress any company you work for. Just mentioning the fact that you passed intermediate accounting, tax, audit, or cost accounting will get you any interview you want.
     
  13. Feb 2, 2012 at 12:05 PM
    #13
    Tacomada

    Tacomada Well-Known Member

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    Well said blackhawk2, people really under estimate the accounting part of a business degree.... If you think of the main components of a business degree youve got things like marketing, human resources, finance, accounting, economics etc....

    Ask your average person and they will tell you marketings not so hard, human resources not so hard... Im not saying they are, but the majority of businesses think that way. Ask people about accounting and they have no idea debits and credits?! Not really any harder than being an expert in another area of business but to the average person its like a different language. If you can develop some skill there, you'll always be able to find work!
     
  14. Feb 3, 2012 at 12:21 AM
    #14
    Kelson

    Kelson My Truck is Cuter than Yours

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    ask an asian
     
  15. Feb 8, 2012 at 3:44 PM
    #15
    Mike8016

    Mike8016 [OP] Well-Known Member

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    My teacher assigned us more accounting and i need more help lol.

    The Donaldson Company uses a job-order costing system. The following data were recorded for July:

    Overhead is applied to jobs at the rate of 80% of direct materials cost. Jobs 475, 477, and 478 were completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. This means that only job 476 remains in WIP at the end of July. Donaldson's Work in Process inventory balance on July 31 was:
     
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