Jasper Company Makes Two Versions of One Product,Standard and Deluxe

question 33

Essay

Jasper Company makes two versions of one product,Standard and Deluxe.In November,sales of standard and Deluxe amount to $680,000 and $520,000,respectively.The contribution margin ratio for Standard is 30% and Standard had direct fixed production and administrative costs of $125,000.The contribution margin ratio for Deluxe was 40% and direct fixed costs were $160,000.Common costs that couldn't be allocated in a meaningful way were $100,000.
Prepare a segmented income statement for the month of November.

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Definitions:

Income Statement Debit Column

Typically, an income statement does not use a debit column; instead, expenses decrease revenue to show net income or loss.

Balance Sheet Credit Column

Part of the balance sheet that records liabilities, equity, and certain revenues that increase the company's worth or decrease its debts.

Worksheet

An informal business document used internally for planning and preparatory purposes, assisting in the preparation of financial statements or other reports.

Worksheet

A document or tool used by accountants to record and organize financial data, facilitating the preparation of financial statements.