Jasper Company provided the following information for last year: Sales in units 280,000 Selling price $ 12 Direct materials 180,000 Direct labor 505,000 Manufacturing overhcad Selling expense Administrative expense 110,000 437,000 854,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Exercise 2-48 Income Statement Refer to the information for Jasper Company on the previous page. Required: 1. Calculate the sales revenue for last year. 2. Prepare an income statement for Jasper for last year.

Jasper Company provided the following information for last year: Sales in units 280,000 Selling price $ 12 Direct materials 180,000 Direct labor 505,000 Manufacturing overhcad Selling expense Administrative expense 110,000 437,000 854,000 Last year, beginning and ending inventories of work in process and finished goods equaled zero. Exercise 2-48 Income Statement Refer to the information for Jasper Company on the previous page. Required: 1. Calculate the sales revenue for last year. 2. Prepare an income statement for Jasper for last year.

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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During Heaton Company's first two years of operations, It reported absorption costing net operating income as follows: Sales (e $63 per unit) Cost of goods sold (e $37 per unit) Gross margin Selling and administrative expenses Net operating income Year 1 $ 1,071,000 629,000 442,000 298,000 $ 144,000 Year 2 $ 1,701,000 999,000 702,000 328,000 $ 374,000 $3 per unit variable; $247,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($374,000 + 22,000 units) Absorption costing unit product cost $ 5 10 17 $ 37 Production and cost data for the first two years of operations are: Year 1 22,000 17,000 Year 2 Units produced Units sold 22,000 27,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net…
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