Question
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 overhead
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 overhead 110,000
Selling expense 437,000
Administrative expense 854,000
Last year, beginning and ending inventories of work in process and finished goods equaled zero.
Required:
1. Make an income statement for Jasper last year. Calculate the percentage of sales for each line item on the income statement. (Note: Round percentages to the nearest tenth of a percent.)
2. CONCEPTUAL CONNECTION Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs.
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