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20 November, 17:24

Jasper Company provided the following information for last year: Costs Amount Sales in units 285,000 Selling price $17 Direct materials $143,000 Direct labor $503,000 Manufacturing overhead $110,000 Selling expense $439,000 Administrative expense $860,000 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.

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  1. 20 November, 17:30
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Sales in units 285,000

    Selling price $17

    Direct materials $143,000

    Direct labor $503,000

    Manufacturing overhead $110,000

    Selling expense $439,000

    Administrative expense $860,000

    A) Sales revenue = 285,000 units * $17 = $4,845,000

    B) Income statement:

    Sales revenue = 4,845,000

    COGS = (DM + DL + Overhead) = (756,000)

    Gross profit = 4,089,000

    Selling expense = (439,000)

    Administrative expense = (860,000)

    Net operating income = 2,790,000
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