Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1) Owen Audio shows the following information for its two divisions for year 1. Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead Consumer Division $ 1,867,200 1,120,320 288,400 130,080 Commercial Division $ 5,912,800 3,792,100 361,840 411,920 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute divisional operating income for the two divisions. Ignore taxes. Consumer Division Commercial Division Operating income < Req A Req B1 >

Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1) Owen Audio shows the following information for its two divisions for year 1. Sales revenue Cost of sales Selling, General and Administrative Allocated corporate overhead Consumer Division $ 1,867,200 1,120,320 288,400 130,080 Commercial Division $ 5,912,800 3,792,100 361,840 411,920 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute divisional operating income for the two divisions. Ignore taxes. Consumer Division Commercial Division Operating income < Req A Req B1 >

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...

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Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.
Corrections to service department charges Panda Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared The service department charge rate for the service department costs was based on revenues. The following additional information is available a.Does the operating income for the two divisions accurately measure performance? b.Using service charge rates for service department charges, correct the divisional income statements.
Divisional income statements with support department allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Services Department $1,158,300 480,000 Purchasing Department Other corporate administrative expenses 704,000 $2,342,300 Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services 500 computers 310 810 computers Purchasing 5,600 purchase orders 10,400 16,000 purchase orders The support department…
Exercise 14-25 (Algo) Compute Divisional Income (LO 14-1) Owen Audio shows the following information for its two divisions for year 1. Consumer Division Commercial Division Sales revenue Cost of sales $ 1,864,800 Selling, General and Administrative Allocated corporate overhead 1,118,880 287,400 129,960 $ 5,905,200 3,791,100 360,840 411,540 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute divisional operating income for the two divisions. Ignore taxes. Operating income Consumer Division Commercial Division Req A Req B1 >
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 $348,510 Commercial Division $47,520 Residential Division 171,510 Residential Division 29,710 Administrative expenses: Net sales: Commercial Division $63,370 Commercial Division $528,050 Residential Division 61,250 Residential Division 306,270 Prepare divisional income statements for Jersey Coast Construction Company. Jersey Coast Construction Company Divisional Income Statements For the Year Ended June 30, 20Y8 Commercial Division Residential Division Income from operations before service department charges $fill in the blank 2 $fill in the blank 3 Cost of goods sold fill in the blank 5 fill in the blank 6 Gross profit $fill in the blank 8 $fill in the blank 9 Administrative…
Exercise 14-22 (Algo) Compute Divisional Income (LO 14-1) Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,110,000 $ 13,020,000 Cost of sales 2,666,300 6,510,000 Allocated corporate overhead 246,600 781,200 Other general and administration 548,900 3,750,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes.
Divisional Income Statements The following data were summarized from the accounting records for South Seas Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Service department charges: Commercial Division $551,130 Commercial Division $75,150 Residential Division 280,570 Residential Division 48,600 Administrative expenses: Sales: Commercial Division $100,200 Commercial Division $835,040 Residential Division 100,200 Residential Division 501,020 Prepare divisional income statements for South Seas Coast Construction Company. South Seas Coast Construction Company Divisional Income Statements For the Year Ended June 30, 20Y8 CommercialDivision ResidentialDivision
Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $459,310 Commercial Division $62,630 Residential Division 214,350 Residential Division 37,130 Administrative expenses: Sales: Commercial Division $83,510 Commercial Division $695,920 Residential Division 76,550 Residential Division 382,760 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division %24
Divisional income statements Instructions Amount Descriptions Divisional Income Statements X Instructions 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 $912,250 Residential Division 423,675 Administrative expenses: Commercial Division $149,800 Residential Division 128,625 Service department charges: Commercial Division $112,560 Residential Division 67,830 Sales: Commercial Division $1,354,500 Residential Division 743,780 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.
Divisional Income Statements The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8: Cost of goods sold: Support department allocations: Commercial Division $542,410 Commercial Division $73,970 Residential Division 262,330 Residential Division 45,440 Administrative expenses: Sales: Commercial Division $98,620 Commercial Division $821,840 Residential Division 93,690 Residential Division 468,450 Prepare divisional income statements for Ruiz Industries Inc. Ruiz Industries Inc. Divisional Income Statements For the Year Ended November 30, 20Y8 Commercial Division Residential Division Sales ? ? Cost of goods sold ? ? Gross profit ? ? Administrative expenses ? ? Operating income before support department allocations ? ? Support department allocations ? ? Operating income ? ?
Divisional income statements with support department allocations Horton Technology has two divisions. Consumer and Commercial and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: ACCT 102 Chapter 24 - Homework assignment take frame Teen Services Department 2770,000 292,000 Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services $1,519,500 260 410 computers 670 457,000 Purchasing 5,100 purchase orders 1,322,900…
Corrections to Service Department Charges for a Service Company Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: Wild Sun Airlines Inc.Divisional Income StatementsFor the Year Ended December 31, 20Y9 Passenger Division Cargo Division Revenues $3,025,000 $3,025,000 Operating expenses 2,450,000 2,736,000 Income from operations beforeservice department charges $575,000 $289,000 Less service department charges: Training $125,000 $125,000 Flight scheduling 108,000 108,000 Reservations 151,200 384,200 151,200 384,200 Income from operations $190,800 $(95,200) The service department charge rate for the service department costs was based on revenues. Because the revenues of the two divisions were the same, the service department charges to each division were also the same. The following additional…