Question

Divisional income statements Instructions Amount Descriptions Divisional Income Statements Instructions The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 2048: Cost of goods sold: Commercial Division Residential Division $914,750 445,275 Administrative expenses: Commercial Division $149,800 Residential Division 128,625 Service department charges: Commercial Division $113,500 67,890 Residential Division Sales: Commercial Division $1,356,500 Residential Division 745,080

Answer 1

Divisional income statement for the year ended 30th June 20Y8 : Commercial Residential Particulars Division Division Sales 13,56,500 7,45,080 Less: Cost of goods sold 9,14,750 4,45,275 Gross Profit 4,41,750 2,99,805 Less: Administrative expenses 1,49,800 1,28,625 Income from operations before service department charges 2,91,950 1,71,180 Less: Service department charges 1,13,500 67,890 Income from operations 1,78,450 1,03,290