Question

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8:

Cost of goods sold: Service department charges:
Commercial Division $497,230 Commercial Division $67,800
Residential Division 248,910 Residential Division 43,120
Administrative expenses: Net sales:
Commercial Division $90,410 Commercial Division $753,380
Residential Division 88,900 Residential Division 444,490

Required:
Prepare divisional income statements for Jersey Coast Construction Company.

Answer 1

Divisional income statements

Jersey Coast Construction Company

Particulars Commercial Residential

Net sales $753,380 $444,490

Cost of goods sold $497,230 $248,910

Gross profit $256,150 $195,580

Administrative expenses $90,410 $88,900

Income from operation before service $165,740 $106,680

Service department charges $67,800 $43,120

Income from operation $97,940 $63,560