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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used 83,000 10,900 Depreciation 12,000 The company reports the following indirect expenses for the year. Amount Indirect Expense Utilities $ 7,800 Supervisor salaries 31,000 Additional information about the two departments follows. Department Square Footage Number of Employees clothes Shoes 84 36 28,000 12,000 Clothes $ 832,000 460,000 124,000 19,000 16,000 Shoes $468,000 304, 200 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.

Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used 83,000 10,900 Depreciation 12,000 The company reports the following indirect expenses for the year. Amount Indirect Expense Utilities $ 7,800 Supervisor salaries 31,000 Additional information about the two departments follows. Department Square Footage Number of Employees clothes Shoes 84 36 28,000 12,000 Clothes $ 832,000 460,000 124,000 19,000 16,000 Shoes $468,000 304, 200 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.

FINANCIAL ACCOUNTING
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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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages 83,000 Supplies used 10,900 Depreciation 12,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Clothes $ 832,000 460,000 28,000 12,000 124,000 19,000 16,000 Shoes $468,000 304, 200 Amount $ 7,800 31,000 Additional information about the two departments follows. Department Square Footage Number of Employees clothes Shoes 84 36 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.
Transcribed Image Text:Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages 83,000 Supplies used 10,900 Depreciation 12,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Clothes $ 832,000 460,000 28,000 12,000 124,000 19,000 16,000 Shoes $468,000 304, 200 Amount $ 7,800 31,000 Additional information about the two departments follows. Department Square Footage Number of Employees clothes Shoes 84 36 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.
Required 1 Required 2 Allocate indirect expenses to the two operating departments. Allocation of $7,800 of utilities expense Department Square Footage Clothes Shoes Total Clothes Shoes Total Allocation of $31,000 of supervisor salaries expense Employees Required 1 Requird 2 28,000 12,000 40,000 Sales Less: Cost of goods sold Gross profit Percent of Total Prepare departmental income statements. Expenses Wages Supplies used Depreciation Utilities Supervisor salaries Total expenses Income Percent of Total 0% S Cost Allocated Complete this question by entering your answers in the tabs below. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Clothes Cost Allocated 0% $ 0 0$ 0 0 Required 2 > Shoes 0 0 0
Transcribed Image Text:Required 1 Required 2 Allocate indirect expenses to the two operating departments. Allocation of $7,800 of utilities expense Department Square Footage Clothes Shoes Total Clothes Shoes Total Allocation of $31,000 of supervisor salaries expense Employees Required 1 Requird 2 28,000 12,000 40,000 Sales Less: Cost of goods sold Gross profit Percent of Total Prepare departmental income statements. Expenses Wages Supplies used Depreciation Utilities Supervisor salaries Total expenses Income Percent of Total 0% S Cost Allocated Complete this question by entering your answers in the tabs below. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Clothes Cost Allocated 0% $ 0 0$ 0 0 Required 2 > Shoes 0 0 0
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