Jasper Company provided the following information for last year: Costs Amount Sales in units 325,000 Selling price $12 Direct materials $171,000 Direct labor $505,000 Manufacturing overhead $110,000 Selling expense $433,000 Administrative expense $869,000 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. 1. Calculate the sales revenue for last year. 2. Prepare an income statement for Jasper for last year. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. Be sure to complete the statement heading. Jasper Company Income Statement 1 2 3 4 5 6 7 Refer to the list below for the exact wording of a label or an amount description within your income statement. Refer to the list below for the exact wording of a label or an amount description within your income statement. Labels Add For the Last Year For the Next Year Less Amount Descriptions Administrative expense Cost of goods manufactured Cost of goods sold Gross profit Operating income Operating loss Sales revenue Selling expense
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Costs
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Amount
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| Sales in units | 325,000 |
| Selling price | $12 |
| Direct materials | $171,000 |
| Direct labor | $505,000 |
| Manufacturing |
$110,000 |
| Selling expense | $433,000 |
| Administrative expense | $869,000 |
| Required: | |
| 1. | Calculate the sales revenue for last year. |
| 2. | Prepare an income statement for Jasper for last year. |
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Jasper Company
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Income Statement
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| Labels | |
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| For the Last Year | |
| For the Next Year | |
| Less | |
| Amount Descriptions | |
| Administrative expense | |
| Cost of goods manufactured | |
| Cost of goods sold | |
| Gross profit | |
| Operating income | |
| Operating loss | |
| Sales revenue | |
| Selling expense |
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