Question

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.

Answer 1

Answer:

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