For Year Ended December 31 Sales Cost of goods sold Clothes $ 825,500 Shoes $ 444,500 288,925 Direct expenses: Wages Supplies used Depreciation 420,000 123,000 84,000 13,500 10,700 18,000 12,500 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,200 33,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes Shoes 26,400 17,600 60 40 Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.
For Year Ended December 31 Sales Cost of goods sold Clothes $ 825,500 Shoes $ 444,500 288,925 Direct expenses: Wages Supplies used Depreciation 420,000 123,000 84,000 13,500 10,700 18,000 12,500 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,200 33,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes Shoes 26,400 17,600 60 40 Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dinesh bhai
Transcribed Image Text:For Year Ended December 31
Sales
Cost of goods sold
Clothes
$ 825,500
Shoes
$ 444,500
288,925
Direct expenses:
Wages
Supplies used
Depreciation
420,000
123,000
84,000
13,500
10,700
18,000
12,500
The company reports the following indirect expenses for the year.
Indirect Expense
Utilities
Supervisor salaries
Amount
$ 7,200
33,000
Allocation Base
Square feet of space occupied
Number of employees in department
Additional information about the two departments follows.
Department Square Footage Number of Employees
Clothes
Shoes
26,400
17,600
60
40
Required:
1. Allocate indirect expenses to the two operating departments.
2. Prepare departmental income statements.
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