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 Cost of goods sold 435,000 Salaries 113,000($25,000 is indirect)Utilities 15,600($5,700 is indirect)Depreciation 54,400($17,400 is indirect)Office expenses 29,600(all indirect) 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 Income statement For the year 2019 Sales $610,000 Cost of goods sold…

Answered: Jansen Company reports the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
Cost of goods sold		435,000
Salaries		113,000	($25,000 is indirect)
Utilities		15,600	($5,700 is indirect)
Depreciation		54,400	($17,400 is indirect)
Office expenses		29,600	(all indirect)

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?

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