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    southerbell88's Avatar
    southerbell88 Posts: 3, Reputation: 1
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    #1

    Jul 12, 2009, 02:14 PM
    Income Statement
    Super Bookstore (SB) is a large city bookstore that sells books and music CDs, and has a café. SB operates at capacity and allocates selling, general and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. SB wants to optimize the pricing and cost management of each product line. SB is wondering if its accounting system is providing it with the best information for making such decisions.



    1. Suppose Super bookstore uses cost of merchandise to allocate all S, G & A costs. Prepare product line and total company income statements.
    2. Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating S, G & A costs that you propose to prepare new product line and total company income statements. Compare your results to the results in 1.

    The information is attatched along with what I got. Am I on the right track at all?
    Attached Files
  1. File Type: xls Book1.xls (24.5 KB, 295 views)
    2. peepj's Avatar
    peepj Posts: 1, Reputation: 1
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    #2

    Jan 22, 2011, 06:43 AM
    Need help with these questions
    hui90hui's Avatar
    hui90hui Posts: 1, Reputation: 1
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    #3

    Apr 20, 2012, 10:36 PM
    @southerbell88 Have solve this quesition?
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