Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 140,000 68,600 71,400 Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,788 2,300 5,000 19,738 $ 16,370 Combined $ 235,000 127,500 107,500 29,400 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 140,000 68,600 71,400 Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,788 2,300 5,000 19,738 $ 16,370 Combined $ 235,000 127,500 107,500 29,400 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 7SPA: INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors...
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