Return to ques Exercise 22-8 Departmental income statement and contribution to overhead LO P3 10...
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Return to ques Exercise 22-8 Departmental income statement and contribution to overhead LO P3 10 Jansen Company reports the following for its ski department for the year 2019. All of its costs are direct, except as noted. points Sales Cost of goods sold Salaries Utilities Depreciation office expenses $610,000 445,000 115,000 ($25,600 is indirect) 17,800 ($5,900 is indirect) 50,000 ($17,500 is indirect) 29,200 (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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 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 Contribution to Overhead-Ski Department For Year Ended December 31, 2019 Ski Dept Sales $ 610,000 Cost of goods sold 445,000 Gross profit 165,000 Direct expenses Salaries 89,400 Utilities 11,900 Depreciation 32,500 Office expenses 133,800 X Contribution to overhead (102,600) Should Jansen eliminate the ski department? No
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