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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 Required: Phone Earbuds $ 240,000 117,600 $ 85,000 Combined $325,000 52,700 170,300 122,400 32,300 154,700 21,000 7,000 28,000 600 550 1,150 2,500 400 2,900 7,030 4,020 11,050 3,000 1,400 4,400 13,500 3,500 47,630 16,870 17,000 64,500 $ 74,770 $ 15,430 $ 90,200 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 0 Departmental contribution to overhead $ 0 $ 0 $ 0

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 Required: Phone Earbuds $ 240,000 117,600 $ 85,000 Combined $325,000 52,700 170,300 122,400 32,300 154,700 21,000 7,000 28,000 600 550 1,150 2,500 400 2,900 7,030 4,020 11,050 3,000 1,400 4,400 13,500 3,500 47,630 16,870 17,000 64,500 $ 74,770 $ 15,430 $ 90,200 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 0 Departmental contribution to overhead $ 0 $ 0 $ 0

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. 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 Required: Phone Earbuds Combined $ 240,000 117,600 122,400 $ 85,000 52,700 $ 325,000 32,300 170,300 154,700 21,000 7,000 28,000 600 550 1,150 2,500 400 2,900 7,030 4,020 11,050 3,000 1,400 4,400 13,500 3,500 17,000 47,630 16,870 64,500 $ 74,770 $ 15,430 $ 90,200 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 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 Required: Phone Earbuds Combined $ 240,000 117,600 122,400 $ 85,000 52,700 $ 325,000 32,300 170,300 154,700 21,000 7,000 28,000 600 550 1,150 2,500 400 2,900 7,030 4,020 11,050 3,000 1,400 4,400 13,500 3,500 17,000 47,630 16,870 64,500 $ 74,770 $ 15,430 $ 90,200 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 0 Departmental contribution to overhead $ 0 $ 0 $ 0
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