Question

# The following data were summarized from the accounting records for Jersey Coast Construction Company for the...

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8:

 Cost of goods sold: Commercial Division \$916,250 Residential Division 450,675 Administrative expenses: Commercial Division \$149,200 Residential Division 128,800 Service department charges: Commercial Division \$112,740 Residential Division 68,850 Sales: Commercial Division \$1,360,500 Residential Division 749,500

Prepare divisional income statements for Jersey Coast Construction Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

 Amount Descriptions Administrative expenses Cost of goods sold Gross profit Income from operations Income from operations before service department charges Sales Selling expenses Service department charges Transportation expenses

X

Divisional Income Statements

Based on the data given, the divisional income statement can be prepared as:

Sales - (1360500+749500) = 2110000

Cost of goods sold - (916250+450675) = 1366925

Gross profit = (2110000-1366925) = 743075

Administrative expenses - (149200+128800) = 278000

Selling Expenses -0

Transport Expenses - 0

Income from operations before service department charges - (743075-278000) = 465075

Service department charges - (112740+68850) = 181590

Income from operations = (465075-181590) = 283485

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