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Jasper Company provided the following information for last year:
Costs Amount
Sales in units 290,000
Selling price $13
Direct materials $150,000
Direct labor $504,000
Manufacturing overhead $110,000
Selling expense $437,000
Administrative expense $860,000
Last year, beginning and ending inventories of work in process and finished goods equal zero.
Required:
1. Calculate the sales revenue for last year.
2. Prepare an income statement for Jasper for last year.

Respuesta :

Answer:

1. $3,770,000

Explanation:

1. The sales revenues is

= Sales in units × Selling price

= 290,000 units × $13

= $3,770,000

2. Now the preparation of the income statement for Jasper is presented below:

                                                 Income statement

Sales revenue       $3,770,000

Less: Cost of goods sold $764,000     ($150,000 + $504,000 + $110,000)

Gross profit $3,006,000

Less:

Selling expense $437,000

Administrative expense $860,000

Net income     $1,709,000

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