Please do not give solution in image format thanku <Divisional Income Statements with Service Department ChargesGrael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:Tech Support Department$735,300253,500Purchasing DepartmentOther corporate administrative expenses425,000Total corporate expense$1,413,800The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in thedepartment, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:Tech SupportPurchasing350 computers 5,900 purchase ordersConsumer DivisionCommercial Division22011,000Total570 computers 16,900 purchase ordersThe service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues,cost of goods sold, and operating expenses for the two divisions are as follows:CommercialRevenues$5,200,900Cost of goods sold2,626,200Operating expenses1,300,100Prepare the divisional income statements for the two divisions. Do not round your interim calculations.GRAEL TECHNOLOGYRevenuesCost of goods soldGross profitConsumer$6,350,600.3,528,1001,245,700Divisional Income StatementsFor the Year Ended December 31, 20Y7Operating expensesIncome from operations before service department chargesLess service department charges:Tech Support departmentPurchasing departmentIncome from operationsConsumer Division8.8Commercial Division

The divisional income statement is one of the formats of financial statements used in an entity…

Divisional Income Statements with Service Department Charges Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department Purchasing Department Other corporate administrative expenses Total corporate expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Consumer Division Commercial Division Total Tech Support Purchasing 350 computers 5,900 purchase orders 220 11,000 570 computers 16,900 purchase orders ' The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Revenues Cost of goods sold Gross profit Consumer $6,350,600 3,528,100 1,245,700 ✓ Revenues Cost of goods sold 2,626,200 Operating expenses 1,300,100 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. GRAEL TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 2017 - V V t $735,300 253,500 425,000 $1,413,800 Operating expenses Income from operations before service department charges. Less service department charges: Tech Support department Purchasing department Income from operations ✓ V Commercial $5,200,900 ✓ Consumer Division 00000 001 QO lau Commercial Division 88

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q