Question

Jasper Company provided the following information for last year: Costs Amount Sales in units 280,000 Selling price $12 Direct materials $180,000 Direct labor $505,000 Manufacturing overhead $110,000 Selling expense $437,000 Administrative expense $854,000 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. 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 Less Amount Descriptions Administrative expense Cost of goods manufactured Cost of goods sold Gross profit Operating income Operating loss Sales revenue Selling expense

Answer 1

1) = $3,360,000

2) $1,274,000

Step-by-step explanation:

Question 1: Prepare the Sales Revenue for Jasper Company as follows:

Sales Units x Selling price per unit = Sales Revenue

= 280,000 units x $12 = $3,360,000

Based on the Sales Revenue computed, the Income Statement for Jasper Company for the Previous year can now be computed

Question 2: Compute the Income Statement

Description Amount Amount

Sales Revenue $3,360,000

Less Costs

Direct materials $180,000

Direct Labour $505,000

Manufacturing Overhead $110,000

Selling Expenses $437,000

Administrative Expenses $854,000

Total costs ($2,086,000)

Net Income $1,274,000