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22 November, 04:17

Jasper Company provided the following information for last year:

Costs Amount

Sales in units 290,000

Selling price $13

Direct materials $150,000

Direct labor $504,000

Manufacturing overhead $110,000

Selling expense $437,000

Administrative expense $860,0

Last year, beginning and ending inventories of work in process and finished goods equaled zero.

Required: 1. Prepare an income statement for Jasper for last year.

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  1. 22 November, 04:45
    0
    The preparation of the income statement is presented below:

    Jasper Company

    Income Statement

    Sales $3,770,000 (290,000 * $13)

    Less: Cost of goods sold - $764,000 ($150,000 + $504,000 + $110,000)

    Gross margin $3,006,000

    Less: Operating expenses

    Selling expenses - $437,000

    Administrative expenses - $860,000

    Total operating expenses - $1,297,000

    Net income $1,709,000

    We assume that the administrative expenses is $860,000
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