None Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental incomestatements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.GARCIA COMPANYDepartmental Income StatementsFor Year Ended December 31SalesCost of goods soldGross profitExpensesSales salariesSupplies usedDepreciation-EquipmentRentUtilitiesShare of office department expensesTotal expensesIncomePhoneEarbudsCombined$ 260,000127,400132,600$ 95,00058,900$ 355,000186,30036,100168,70020,5007,60028,1001,0503501,4002,4002002,6007,0503,78010,8302,8002,2005,00011,5006,50018,00045,30020,63065,930$ 87,300$ 15,470$ 102,770Required:Prepare a departmental contribution to overhead report.Garcia CompanyDepartmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesPhoneEarbudsCombined000Total direct expenses00Departmental contribution to overhead$0$0$0

It refers to the portion of indirect costs that can be allocated to specific departments based on…

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. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Phone $ 260,000 Earbuds $ 95,000 Combined $355,000 000 306 200

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. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Phone $ 260,000 Earbuds $ 95,000 Combined $355,000 000 306 200

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPB

See similar textbooks

Similar questions

COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of departments A and B of Ash Company are as follows: Compute the departmental operating income for each department.
INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors has divided its business into two departments: commercial sales and industrial sales. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental gross profit and total operating income. 2. Calculate departmental gross profit percentages.
INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood Thomas operates the business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental direct operating margin and total operating income. 2. Calculate departmental direct operating margin percentages.
Rundle Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item. Loss on sale of land Net income BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Total assets Assets Cash Accounts receivable Merchandise inventory Equipment less accumulated depreciation Nonoperating assets Liabilities BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Accounts payable Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity Required Required C Required D Required E ROI $ 106,780 58,475 48,305 (2,720) (4,045) 41,540 Complete this question by entering your answers in the tabs below. %6 (4,900) $36,640 c. Calculate the ROI for Bowman. d. Rundle has a desired ROI of 11 percent. Headquarters has $86,000 of funds to…
Required information [The following information applies to the questions displayed below.] Use the following selected account balances of Delray Manufacturing for the year ended December 31. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases. Direct labor Indirect labor Repairs-Factory equipment Rent cost of factory building Selling expenses General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 2,700,000 112,000 146,000 190,000 515,000 618,000. 93,000 74,000 148,000 237,000 379,000 134,000 175,000 228,000 Prepare an income statement for Delray Manufacturing (a manufacturer). Assume that its cost of goods manufactured is $1,397,00
Lechon Company provided the following data for the current year: Sales Cost of goods sold Expenses Depreciation Income tax expense The entity has two major reportable segments, A and B. An analysis revealed that P1,000,000 of the total depreciation expense and P2,000,000 of the expenses are related to general corporate activities. The remaining expenses and sales are directly allocable to segment activities according to the following percentages: Sales Cost of goods sold Expenses Depreciation P60,000,000 28,000,000 14,000,000 4,000,000 4,000,000 Segment A 40% 35 40 40 Segment B 45% Others 15% 15 20 15 50 40 45 What amount should be reported as net income of Segment A?
Shanika Company Income Statement For the Year Ended December 31, 20Y6 Cost of good sold: Operating expenses: Administrative expenses: Selling expenses: Total operating expenses
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…
Williams Company began operations in January 2019 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. WILLIAMS COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Clock Mirror Combined Sales $ 135,000 $ 57,500 $ 192,500 Cost of goods sold 66,150 35,650 101,800 Gross profit 68,850 21,850 90,700 Direct expenses Sales salaries 20,050 7,000 27,050 Advertising 1,210 525 1,735 Store supplies used 925 425 1,350 Depreciation—Equipment 1,510 325 1,835 Total direct expenses 23,695 8,275 31,970 Allocated expenses Rent expense 7,020 3,780 10,800 Utilities expense 2,925 1,575 4,500 Share of office department expenses 10,500 4,500 15,000 Total allocated expenses 20,445 9,855 30,300 Total expenses…
Profit center responsibility reporting Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division Cost of Goods Sold-Summer Sports Division Sales Expense-Winter Sports Division Sales Expense-Summer Sports Division Administrative Expense-Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense $36,907,500 40,774,000 22,144,500 23,550,500 6,327,000 5,624,000 3,690,800 3,620,500 935,000 447,000 228,800 3,515,000 Accounts Receivable Collection Expense Warehouse Expense The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising…
The comparative statements of Bonita Company are presented here. Net sales Bonita Company Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2022 $1,811,500 1,008,900 802,600 518,600 284,000 17,800 266,200 80,152 $ 186,048 2021 $1,752,200 982,000 770,200 472,800 297,400 13,800 283,600 76,400 $207,200
Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?