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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 230,000 112,700 117,300 Rent Utilities Share of office department expenses Total expenses Income 20,500 600 1,500 7,060 3,000 10,000 42,660 $ 74,640 Required: Prepare a departmental contribution to overhead report. Earbuds $ 115,000 71,300 43,700 8,700 600 700 3,780 1,300 3,000 18,080 $ 25,620 Combined $ 345,000 184,000 161,000 29,200 1,200 2,200 10,840 4,300 13,000 60,740 $ 100,260

Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 230,000 112,700 117,300 Rent Utilities Share of office department expenses Total expenses Income 20,500 600 1,500 7,060 3,000 10,000 42,660 $ 74,640 Required: Prepare a departmental contribution to overhead report. Earbuds $ 115,000 71,300 43,700 8,700 600 700 3,780 1,300 3,000 18,080 $ 25,620 Combined $ 345,000 184,000 161,000 29,200 1,200 2,200 10,840 4,300 13,000 60,740 $ 100,260

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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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses. Sales salaries Supplies used Depreciation-Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Rent Utilities Share of office department expenses Total expenses Income Phone $ 230,000 112,700 117,300 20,500 600 1,500 7,060 3,000 10,000 42,660 $ 74,640 Required: Prepare a departmental contribution to overhead report. Earbuds $ 115,000 71,300 43,700 8,700 600 700 3,780 1,300 3,000 18,080 $ 25,620 Combined $ 345,000 184,000 161,000 29, 200 1,200 2,200 10,840 4,300 13,000 60,740 $ 100,260
Transcribed Image Text:Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses. Sales salaries Supplies used Depreciation-Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Rent Utilities Share of office department expenses Total expenses Income Phone $ 230,000 112,700 117,300 20,500 600 1,500 7,060 3,000 10,000 42,660 $ 74,640 Required: Prepare a departmental contribution to overhead report. Earbuds $ 115,000 71,300 43,700 8,700 600 700 3,780 1,300 3,000 18,080 $ 25,620 Combined $ 345,000 184,000 161,000 29, 200 1,200 2,200 10,840 4,300 13,000 60,740 $ 100,260
Required: Prepare a departmental contribution to overhead report. Direct expenses Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Phone Earbuds Combined
Transcribed Image Text:Required: Prepare a departmental contribution to overhead report. Direct expenses Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Phone Earbuds Combined
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