Question

Instructions Jasper Company provided the following information for last year: Costs Amount Sales in units Selling price 325,000 $12 $171,000 Direct materials $505,000 Direct labor Manufacturing overhead $110,000 $433,000 Selling expense Administrative expense $869,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Required: 1. Calculate the sales revenue for last year. 2. Prepare an income statement for Jasper for last year.

Answer 1

4. Sales in Units 5 Selling Price 325,000 (A) $12 (B) Sales Revenue ($) for the last year 6 3,900,000 (A)*(B) 7 10 3,900,000 8 2 Jasper Company Income Statement 11 Sales Revenue 12 Cost of Goods Sold 13 Direct Materials 171,000 14 Direct Labor 505,000 15 Manufacturing Overhead 110,000 16 Gross Profit 17 Less : 18 Selling Expense 433,000 19 Administrative Expense 869,000 20 Operating Income -786,000 3,114,000 -1,302,000 1,812,000 22