Please do not give solution in image format thanku кеq iFor the Ski department only, prepare a departmental income statement.Departmental Income StatementFor Year Ended December 31Expenseskeq z and 3Total expensesReq 1Req 2 and 3Departmental Contribution to OverheadFor the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should theSki department be eliminated?For Year Ended December 31Total direct expensesDepartmental contribution to overheadShould the Ski department be eliminated?Ski DepartmentSki DepartmentSONY TO Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow.Direct expensesIndirect expensesService department expenses$ 22, 200SalariesDepreciation$ 118,000 Rent52,8001. For the Ski department only, prepare a departmental income statement.2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these tworeports, should the Ski department be eliminated?Req 1$ 17,700 officeComplete this question by entering your answers in the tabs below!Req 2 and 3

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Description: Please do not give solution in image format thanku кеq iFor the Ski department only, prepare a departmental income statement.Departmental Income StatementFor Year Ended December 31Expenseskeq z and 3Total expensesReq 1Req 2 and 3Departmental Contribu

The departmental contribution to overhead is calculated as the difference between gross margin and…

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Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow. Indirect expenses Service department expenses $ 17,700 office $ 22,200 Direct expenses Salaries Depreciation $ 118,000 Rent 52,800 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Complete this question by entering your answers in the tabs below! Req 1 Req 2 and 3

Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $620,000 and cost of goods sold of $434,000. Its expenses follow. Indirect expenses Service department expenses $ 17,700 office $ 22,200 Direct expenses Salaries Depreciation $ 118,000 Rent 52,800 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Complete this question by entering your answers in the tabs below! Req 1 Req 2 and 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 11-33 (Algo) Cost Allocation: Direct Method (LO 11-1) Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT 8% 10% The direct costs of the service departments in the previous period were $91,750 for IT, $119,000 for Accounting, and $162,500 for HR. HR allocation Total costs allocated Accounting HR West East 81% 40% 20% 40% 0% 40% 60% 10% 60% 20% Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round Intermediate calculations. Service department costs IT allocation Accounting allocation IT Accounting HR West East
Summary Data for April Support Department Support Departments Production Departments Information Research and Technology Travel Service Analysis Audit Tax Consulting Total IT: Number of employees TS: Number of trips 9 5 15 120 150 110 409 15 12 10 120 160 520 837 RA: Number of requests Costs to Allocate 15 10 4 125 120 280 554 $ 810,000.00 $125,000.00 $1,280,000.00 $ $ $ $2,215,000.00 Question Answer 1. Which of the following is the closest approximation of the sales forecast's upper confidence bound for the 1/1/2028 quarter? 2. Based on the graph and the breadth of the confidence intervals, which seems easier to predict, sales or income before extraordinary items? 3. What is the sales forecast's upper confidence bound for the 10/1/2027 quarter? 4. What is the forecast lower confidence bound for the 4/1/2027 quarter? 5. What is the forecast for income before extraordinary items for Nintendo for the quarter starting 10/1/2027?
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Problem 8 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) 15,000 Correspondence (letters) 10,000 Allocated Costs $60,000 0,000 Allocation Base 2,000 hours 20,000 liners 20,000 accounts 1,000 letters The above activities are used by departments P and Q P Department Q Account inquiry (hours) Account billing (lines) Account verification (accounts) 100 hours 10,000 lines 1,000 accounts 50 letters 200 hours 7,000 lines 600 accounts 100 letters 1) How much of the account verification costs will be assigned to Department P
nent and Allocation Assignment 1 Saved BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees Transactions 25 15 60 50,000 10,000 40,000 Department direct costs $59,000 $23,000 $153,500 $601,000 BluStar estimates that the cost structure in its operations is as follows. Variable costs Fixed costs AdministrationAccounting Domestic International $ 5,600 17,400 $27,000 32,000 $110,000 43,500 $433,000 168,000 Total costs $59,000 $23,000 $153,500 $601,000 Avoidable fixed costs $10,000 $4,600 $ 21,500 $113,500 Required: a. If BluStar outsources the Administration Department, what is the maximum it can pay an outside vendor without increasing total costs? b. If BluStar outsources…
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Exercise 22-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Cost Allocation Base Supervision $ 82,500 Number of employees Utilities 50,000 Square feet occupied Insurance 22,500 Value of assets in use Total $ 155,000 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 27 25,000 $ 6,000 Personnel 9 5,000 1,200 Manufacturing 63 55,000 37,800 Packaging 51 15,000 15,000 Total 150 100,000 $ 60,000 1. Use this information to allocate each of the three indirect expenses across the four departments.2. Prepare a summary table that…
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method?
TB MC Qu. 11-53 (Algo) Cordner Corporation has two production departments... Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 120,000 0.70 0.10 0.20 S2 $ 133,000 0.20 0.30 0.50 P1 $ 183,000 P2 $ 176,000 Under the step method of cost allocation, the amount of S2 costs allocated to S1 would be: Multiple Choice $55,200. $0. $26,600. $53,200.
3 /9 90% Question 1: Support Department cost allocation Computer Horizons Ltd. manufactures computers. The company has two corporate support departments (legal and personnel) in supporting each other and two manufacturing departments, the Laptop department and the Workstation department. The overhead costs of support departments are allocated to the manufacturing departments. Legal hours are used to allocate the cost of legal department, and personnel hours are used to allocate the cost of personnel department. The budgeted overhead costs and cost allocation bases are given below: Support Departments Manufacturing Departments Legal Personnel Laptop Workstation Overhead Costs before any inter department cost allocations $9,055 $4,000 $240,000 $200,000 Support Work provided by Legal Department Legal hours 2 37 20 Support work provided by Personnel Department Personnel hours 40 30 200 160 Required: Report the total costs of the manufacturing departments (Laptop and Workstation) after the…
Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $630,000 and cost of goods sold of $441,000. Its expenses follow. Service department expenses Office $ 27,800 Direct expenses Salaries Depreciation Req 1 $ 116,000 44,600 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Complete this question by entering your answers in the tabs below. Gross profit Expenses Indirect expenses Req 2 and 3 For Year Ended December 31 Total expenses Income (loss) Rent $ 17,900 For the Ski department only, prepare a departmental income statement. Departmental Income Statement Ski Department