Question

Divisional Income Statements

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:				Service department charges:
	Commercial Division	$339,780			Commercial Division	$46,330
	Residential Division	172,980			Residential Division	29,960
Administrative expenses:				Net sales:
	Commercial Division	$61,780			Commercial Division	$514,820
	Residential Division	61,780			Residential Division	308,890

Prepare divisional income statements for DeSalvo Construction Company.

JERSEY COAST CONSTRUCTION COMPANY
Divisional Income Statements
For the Year Ended June 30, 20Y8
	Commercial Division	Residential Division
	$	$
	$	$
	$	$
	$	$

Answer 1

Divisional Income Statements
						Commercial	Residential
						Division	Division
Net Sales						$ 5,14,820.00	$ 3,08,890.00
Cost of Goods sold						$ 3,39,780.00	$ 1,72,980.00
Gross Profit						$ 1,75,040.00	$ 1,35,910.00
Administrative Expenses						$    61,780.00	$    61,780.00
Income from operations before service department charges						$ 1,13,260.00	$    74,130.00
Service department charges						$    46,330.00	$    29,960.00
Income from operations						$    66,930.00	$    44,170.00