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Unformatted text preview: A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. 1. DIGITAL TUNES INC. Income Statement For the Year Ended December 31, 2010 Sales $13,600,000 Cost of goods sold 3,187,500 Gross profit $10,412,500 Sel ing expenses: Media campaign $4,000,000 Promotional materials 1,700,000 Shipping expenses 212,500 Total sel ing expenses $5,912,500 Administrative expenses: Legal expenses 1,200,000 Total operating expenses 7,112,500 Income from operations $3,300,000 Supporting calculations: Manufacturing cost per unit (CD): Direct materials Blank CD $1.80 Jewel case 0.60 Song lyric insert 0.60 Total direct materials $3.00 Direct labor 0.25 Factory overhead 0.50 Total manufacturing cost per CD $3.75 2. Finished Goods balance, December 31, 2010: $562,500 Work in Process, December 31, 2010: $87,500 Instructions...
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.
- Winter '08