Prepare a segment income statements showing the product margin for each product.
ID: 2537882 • Letter: P
Question
Prepare a segment income statements showing the product margin for each product. Include a column for the entire company. Please use the template below: Patrony Bakery Product and Company Income Statements For Month of March Donuts Bread Pastries Company Sales: Jacksonville Hartford Total Variable Expenses: Baking Selling Total Contribution Margin Direct Fixed baking expenses Product Margin Less unallocated fixed costs Net Income Patrony Bakery bakes 3 products: donuts, bread, and pastries. It sells them in the cities of Jacksonville and Hartford. For March, its first month of operation, the following income statement was prepared Minnesota Bread Company Territory and Company Income Statements For Month of March Minneapolis St. Paul Total Sales Cost of Goods sold Gross profit Selling and Administrative expenses Net Income $2,100$500 $ 2,600 1800 800 625 1500 600 400 300 200 225 200 $ (25)$ 175 Sales and selected variable expense data are as follows Products Donuts Sales inMinneapolis Sales in St. Paul Variable baking expenses as a percentage of sales Variable selling expenses as a percentage of sales Fixed baking expenses-direct BreadPastries $850$900$350 $200 $150 $150 60% 5% $200 $140 $110 50% 4% 4% Fixed selling and Administrative expenses-common unallocated $511Explanation / Answer
The segmented income statement is prepared as follows:-
Patrony Bakery
Product and Company Income Statements
For Month of March (Amount in $)
Particulars Donuts Bread Pastries Company Sales: Jacksonville 850 900 350 2,100 Hartford 200 150 150 500 Total Sales (A) 1,050 1,050 500 2,600 Variable expenses: Baking (Total sales*given %) (1,050*50%) = 525 (1,050*50%) = 525 (500*60%) = 300 1,350 Selling (Total Sales*given %) (1,050*4%) = 42 (1,050*4%) = 42 (500*6%) = 30 114 Total Variable expenses (B) 567 567 330 1,464 Contribution Margin (A-B) 483 483 170 1,136 Less: Direct Fixed baking expenses 200 140 110 450 Product Margin 283 343 60 686 Less: Unallocated fixed costs (511) Net Income 175