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. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Phone $ 260,000 Earbuds $ 95,000 Combined $355,000 000 306 200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
GARCIA COMPANY
Departmental Income Statements
For Year Ended December 31
Sales
Cost of goods sold
Gross profit
Expenses
Sales salaries
Supplies used
Depreciation-Equipment
Rent
Utilities
Share of office department expenses
Total expenses
Income
Phone
Earbuds
Combined
$ 260,000
127,400
132,600
$ 95,000
58,900
$ 355,000
186,300
36,100
168,700
20,500
7,600
28,100
1,050
350
1,400
2,400
200
2,600
7,050
3,780
10,830
2,800
2,200
5,000
11,500
6,500
18,000
45,300
20,630
65,930
$ 87,300
$ 15,470
$ 102,770
Required:
Prepare a departmental contribution to overhead report.
Garcia Company
Departmental Contribution to Overhead
For Year Ended December 31
Gross profit
Direct expenses
Phone
Earbuds
Combined
0
0
0
Total direct expenses
0
0
Departmental contribution to overhead
$
0
$
0
$
0
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. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income Phone Earbuds Combined $ 260,000 127,400 132,600 $ 95,000 58,900 $ 355,000 186,300 36,100 168,700 20,500 7,600 28,100 1,050 350 1,400 2,400 200 2,600 7,050 3,780 10,830 2,800 2,200 5,000 11,500 6,500 18,000 45,300 20,630 65,930 $ 87,300 $ 15,470 $ 102,770 Required: Prepare a departmental contribution to overhead report. Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Gross profit Direct expenses Phone Earbuds Combined 0 0 0 Total direct expenses 0 0 Departmental contribution to overhead $ 0 $ 0 $ 0
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