Problem 25-6A (Part Level Submission)

Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials		3 pounds at $1.10 per pound		$3.30
Direct labor		1.70 hour at $8.00 per hour		13.60
Overhead		2 hours (variable $4.40 per machine hour; fixed $2.70 per machine hour)		14.20
Standard cost per unit				$31.10

Normal capacity for the month was 4,470 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 6,080 pounds of raw materials on account at $1.18 per pound.
2.		Requisitioned 6,080 pounds of raw materials for Job No. 12.
3.		Incurred 3,306 hours of direct labor at a rate of $7.95 per hour.
4.		Worked 3,306 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $29,060.
6.		Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7.		Completed Job No. 12.
8.		Billed customer for Job No. 12 at a selling price of $171,000.

Prepare the January 2014 income statement for management. Assume selling and administrative expense were $2,100. (Round answers to the nearest whole dollar, e.g. 5,275 ORGENSEN CORPORATION Income Statement For the Month Ended January 31, 2017 Sales Revenue Net Income/ (Loss)