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Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. Sales $ 625,000
Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted.
Sales | $ | 625,000 | |
Cost of goods sold | 440,000 | ||
Salaries | 112,000 | ($25,200 is indirect) | |
Utilities | 17,000 | ($5,500 is indirect) | |
Depreciation | 43,200 | ($17,500 is indirect) | |
Office expenses | 26,200 | (all indirect) | |
1. Prepare a departmental income statement for 2019. 2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
2. & 3. Prepare a departmental contribution to overhead report for 2019. Based on these two performance reports, should Jansen eliminate the ski department?
JANSEN COMPANY Departmental Income Statement-Ski Department For Year Ended December 31, 2019 Ski Dept 0 Operating expenses $ 0 JANSEN COMPANY Departmental Contribution to OverheadSki Department For Year Ended December 31, 2019 Ski Dept 0 Contribution to overhead $ 0 Should Jansen eliminate the ski departmentStep by Step Solution
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