Question

Jansen Company reports the following for its ski department for the year 2017. All of its costs are direct, except as noted. Sales Cost of goods sold Salaries Utilities Depreciation office expenses $610,000 445.000 113,000 ($ 25,600 is indirect 16.700 i95, 200 is indirect) 45.800 ($17.900 is indirect) 27.200 (all indirect) 1. Prepare a departmental income statement for 2017. 2. & 3. Prepare a departmental contribution to overhead report for 2017. Based on these two performance reports, should Jansen eliminate the ski department? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare a departmental income statement for 2017. JANSEN COMPANY Departmental Income Statement-Ski Department For Year Ended December 31, 2017 Ski Dept Operating expenses Reg 1 Req 2 and 3 >

Answer 1

JASEN COMPANY Departemental Income Statement - Ski Department For year Ended December 31, 2017 Ski Dept Sales 610000 Cost of goods sold 445000 Gross profit 165000 Operating Expenses Salaries 113000 Utilities 16700 Depreciation 45800 Office expenses 27200 Operating loss -37700

JASEN COMPANY Departemental Income Statement - Ski Department For year Ended December 31, 2017 Ski Dept Sales 610000 Cost of goods sold 445000 Gross profit 165000 Operating Expenses Salaries 113000 Utilities 16700 Depreciation 45800 Office expenses 27200 Operating loss -37700

JASEN COMPANY Departemental Contribution to overhead - Ski Department For year Ended December 31, 2017 Sales 610000 Cost of goods sold 445000 Gross profit 165000 Direct Expenses Salaries 87400 Utilities 11500 Depreciation 27900 Contribution to overhead Should Jasen eliminate the ski department ? 38200 NO