College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Transcribed Image Text:MARIAN CORPORATION HAS TWO SEPARATE DIVISIONS THAT
OPERATE AS PROFIT CENTERS. THE FOLLOWING INFORMATION IS
AVAILABLE FOR THE MOST RECENT YEAR:
Sales (net)
Salary expense
Cost of goods sold
Black Division
Navy Division
$ 8,00,000
$ 3,90,000
27,000
47,000
1,00,000
1,58,000
THE BLACK DIVISION OCCUPIES 19,000 SQUARE FEET IN THE PLANT.
THE NAVY DIVISION OCCUPIES 29,000 SQUARE FEET. RENT IS AN
INDIRECT EXPENSE AND IS ALLOCATED BASED ON SQUARE
FOOTAGE. RENT EXPENSE FOR THE YEAR WAS $49,000.
COMPUTE GROSS PROFIT FOR THE BLACK AND NAVY DIVISIONS,
RESPECTIVELY.
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