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# Stanley Company

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SetAttached Problem.

3. The Stanley Company produces and markets two product lines: Racquets and Gloves. The following data were gathered on activities during the third quarter:

Racquets Gloves

Sales in units 1,000 5,000
Sales price per unit \$100 \$40
Variable production costs per unit \$20 \$8
Traceable fixed production costs \$20,000 \$37,000
Variable selling expenses per unit \$11 \$2
Traceable fixed selling expenses \$10,000 \$23,000
Allocated portion of corporate expenses \$6,000 \$120,000

Required:

a. Prepare a segmented income statement for last quarter, showing both "Amount" and "Percent" columns for the division as a whole and for each product line.
b. Discuss the differences between traceable costs and common costs.

#### Solution Preview

3. The Stanley Company produces and markets two product lines: Racquets and Gloves. The following data were gathered on activities during the third quarter:

Racquets Gloves

Sales in units 1,000 5,000
Sales price per unit \$100 \$40
Variable production costs ...

#### Solution Summary

This solution is comprised of a detailed explanation to prepare a segmented income statement for last quarter, showing both "Amount" and "Percent" columns for the division as a whole and for each product line.

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Similar Posting

## Preparing a Bank Reconciliation and Journal Entries for Stan Co.

3. The following information pertains to Stan Co.

Cash balance per bank, July 31: \$7,263.
July bank service charge not recorded by depositor: \$28
Cash balance per books, July 31: \$7,284.
Deposits in transit, July 31: \$1,500.
Bank collected \$800 note for Stan in July, plus \$36 interest, less \$20 service fee. The collection has not been recorded by Stan, and no interest has been accrued.
Outstanding checks on July 31st: \$691.

There are two parts to this question:

Prepare a bank reconciliation at July 31st.
Prepare the necessary adjusting journal entries.

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