m 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 $ 230,000 112,700 117,300 Rent Utilities Share of office department expenses. Total expenses Income Gross profit Direct expenses 21,000 700 2,500 7,050 2,600 11,000 44,850 $ 72,450 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Phone Earbuds $ 85,000 52,700 32,300 8,500 350 600 3,600 2,200 3,000 18,250 $ 14,050 Earbuds Combined Combined $ 315,000 165,400 149,600 29,5081 1,050 3,100 10,650 4,800 14,000 63,100 $86,500

m 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 $ 230,000 112,700 117,300 Rent Utilities Share of office department expenses. Total expenses Income Gross profit Direct expenses 21,000 700 2,500 7,050 2,600 11,000 44,850 $ 72,450 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Phone Earbuds $ 85,000 52,700 32,300 8,500 350 600 3,600 2,200 3,000 18,250 $ 14,050 Earbuds Combined Combined $ 315,000 165,400 149,600 29,5081 1,050 3,100 10,650 4,800 14,000 63,100 $86,500

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 8SPA: INCOME STATE MENT WITH DEPARTMENTAL OPERATING INCOME AND TOTAL OPERATING INCOME Alexa Cole owns a...

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