Required:Prepare a departmental contribution to overhead report.Direct expensesGarcia CompanyDepartmental Contribution to OverheadFor Year Ended December 31PhoneTotal direct expensesDepartmental contribution to overhead$0Earbuds Combined00 $000 $000 Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental incomestatements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.GARCIA COMPANYDepartmental Income StatementsFor Year Ended December 31Phone$ 140,00068,60071,400SalesCost of goods soldGross profitExpensesSales salariesSupplies usedDepreciation EquipmentRentUtilitiesShare of office department expensesTotal expensesIncome22,0006502,0007,0502,60012,00046,300$ 25,100Required:Prepare a departmental contribution to overhead report.Earbuds$ 95,00058,90036,1007,4003509003,7802,3005,00019,730$ 16,370Combined$ 235,000127,500107,50829,4081,0002,90010,8304,90017,00066,038$ 41,470

Departmental contribution overheads are the difference between gross profits and other direct…

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 $ 140,000 68,600 71,400 Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,788 2,300 5,000 19,738 $ 16,370 Combined $ 235,000 127,500 107,500 29,400 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470

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 $ 140,000 68,600 71,400 Rent Utilities Share of office department expenses Total expenses Income 22,000 650 2,000 7,050 2,600 12,000 46,300 $ 25,100 Required: Prepare a departmental contribution to overhead report. Earbuds $ 95,000 58,900 36,100 7,400 350 900 3,788 2,300 5,000 19,738 $ 16,370 Combined $ 235,000 127,500 107,500 29,400 1,000 2,900 10,830 4,900 17,000 66,038 $ 41,470

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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