Divisional Income Statements with Service Department Charges Yozamba 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 $912,600 Purchasing Department 265,500 Other corporate administrative expenses 507,000 Total corporate expense $1,685,100 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: Tech Support Purchasing Consumer Division 480 computers 6,200 purchase orders Commercial Division 300 11,500 Total 780 computers 17,700 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: Consumer Commercial Revenues $7,698,200 $6,066,300 Cost of goods sold 4,276,800 3,063,200 Operating expenses 1,510,000 1,516,400 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Consumer Division Commercial Division $fill in the blank 2 $fill in the blank 3 fill in the blank 5 fill in the blank 6 $fill in the blank 8 $fill in the blank 9 fill in the blank 11 fill in the blank 12 Income from operations before service department charges $fill in the blank 13 $fill in the blank 14 Service department charges: $fill in the blank 16 $fill in the blank 17 fill in the blank 19 fill in the blank 20 Total service department charges $fill in the blank 21 $fill in the blank 22 $fill in the blank 24 $fill in the blank 25

Divisional Income Statements with Service Department Charges Yozamba 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 $912,600 Purchasing Department 265,500 Other corporate administrative expenses 507,000 Total corporate expense $1,685,100 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: Tech Support Purchasing Consumer Division 480 computers 6,200 purchase orders Commercial Division 300 11,500 Total 780 computers 17,700 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: Consumer Commercial Revenues $7,698,200 $6,066,300 Cost of goods sold 4,276,800 3,063,200 Operating expenses 1,510,000 1,516,400 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20Y7 Consumer Division Commercial Division $fill in the blank 2 $fill in the blank 3 fill in the blank 5 fill in the blank 6 $fill in the blank 8 $fill in the blank 9 fill in the blank 11 fill in the blank 12 Income from operations before service department charges $fill in the blank 13 $fill in the blank 14 Service department charges: $fill in the blank 16 $fill in the blank 17 fill in the blank 19 fill in the blank 20 Total service department charges $fill in the blank 21 $fill in the blank 22 $fill in the blank 24 $fill in the blank 25

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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Divisional Income Statements with Service Department Charges

Yozamba 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	$912,600
Purchasing Department	265,500
Other corporate administrative expenses	507,000
Total corporate expense	$1,685,100

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:

	Tech Support	Purchasing
Consumer Division	480	computers	6,200	purchase orders
Commercial Division	300		11,500
Total	780	computers	17,700	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:

	Consumer	Commercial
Revenues	$7,698,200		$6,066,300
Cost of goods sold	4,276,800		3,063,200
Operating expenses	1,510,000		1,516,400

Prepare the divisional income statements for the two divisions. Do not round your interim calculations.

Yozamba Technology
Divisional Income Statements
For the Year Ended December 31, 20Y7
	Consumer Division	Commercial Division
	$fill in the blank 2	$fill in the blank 3
	fill in the blank 5	fill in the blank 6
	$fill in the blank 8	$fill in the blank 9
	fill in the blank 11	fill in the blank 12
Income from operations before service department charges	$fill in the blank 13	$fill in the blank 14
Service department charges:
	$fill in the blank 16	$fill in the blank 17
	fill in the blank 19	fill in the blank 20
Total service department charges	$fill in the blank 21	$fill in the blank 22
	$fill in the blank 24	$fill in the blank 25

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