Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted. Sales . . . . . . . . . . . . . . . . .
Jansen Company reports the following for its ski department for the year 2015. All of its costs are direct, except as noted.
Sales . . . . . . . . . . . . . . . . . . . . .$605,000
Cost of goods sold. . . . . . . . . . 425,000
Salaries . . . . . . . . . . . . . . . . . . . 112,000 ($15,000 is indirect)
Utilities. . . . . . . . . . . . . . . . . . . 14,000 ($3,000 is indirect)
Depreciation . . . . . . . . . . . . . . 42,000 ($10,000 is indirect)
Office expenses . . . . . . . . . . . . 20,000 (all indirect)
Prepare a
(1) Departmental income statement for 2015
(2) Departmental contribution to overhead report for 2015.
(3) Based on these two performance reports, should Jansen eliminate the ski department?
Sales . . . . . . . . . . . . . . . . . . . . .$605,000
Cost of goods sold. . . . . . . . . . 425,000
Salaries . . . . . . . . . . . . . . . . . . . 112,000 ($15,000 is indirect)
Utilities. . . . . . . . . . . . . . . . . . . 14,000 ($3,000 is indirect)
Depreciation . . . . . . . . . . . . . . 42,000 ($10,000 is indirect)
Office expenses . . . . . . . . . . . . 20,000 (all indirect)
Prepare a
(1) Departmental income statement for 2015
(2) Departmental contribution to overhead report for 2015.
(3) Based on these two performance reports, should Jansen eliminate the ski department?
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Related Book For 
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date: April 23, 2015 03:21:18
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