Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $610,000 445,000 112,000 ($25,000 is indirect) 17,800 ($5, 800 is indirect) 50,000 ($17,300 is indirect) 28,400 (all indirect) Cost of goods sold Salaries Utilities Depreciation Office expenses 1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $610,000 445,000 112,000 ($25,000 is indirect) 17,800 ($5, 800 is indirect) 50,000 ($17,300 is indirect) 28,400 (all indirect) Cost of goods sold Salaries Utilities Depreciation Office expenses 1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Req 1
Req 2 and 3
Prepare a departmental income statement for 2019.
JANSEN COMPANY
Departmental Income Statement-Ski Department
For Year Ended December 31, 2019
Ski Dept
Sales
24
610,000
Cost of goods sold
445,000
Gross profit
165,000
Operating expenses
Salaries
112,000
Utilities
17,800
Depreciation
50,000
Office expenses
28,400
Operating loss
(43,200)
< Req 1
Req 2 and 3 >
%24
Transcribed Image Text:Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted.
Sales
$610,000
445,000
112,000 ($25,000 is indirect)
17,800 ($5,800 is indirect)
50,000 ($17 ,300 is indirect)
28,400 (all indirect)
Cost of goods sold
Salaries
Utilities
Depreciation
Office expenses
1. Prepare a departmental income statement for 2019.
2. & 3. Prepare a departmental contribution to overhead report for 2019. 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 2019.
JANSEN COMPANY
Departmental Income Statement-Ski Department
For Year Ended December 31, 2019
Ski Dept
Sales
610,000
Prost of anods sold
A45.000l
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