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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 $ 160,000 78,400 81,600 Rent Utilities Share of office department expenses Total expenses Income 22,000 600 1,400 7,110 2,800 13,000 46,910 $ 34,690 Earbuds $ 95,000 58,900 36,100 7,000 300 300 3,600 1,200 8,000 20,400 $ 15,700 Combined $ 255,000 137,300 117,700 29,000 900 1,700 10,710 4,000 21,000 67,310 $ 50,390

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 $ 160,000 78,400 81,600 Rent Utilities Share of office department expenses Total expenses Income 22,000 600 1,400 7,110 2,800 13,000 46,910 $ 34,690 Earbuds $ 95,000 58,900 36,100 7,000 300 300 3,600 1,200 8,000 20,400 $ 15,700 Combined $ 255,000 137,300 117,700 29,000 900 1,700 10,710 4,000 21,000 67,310 $ 50,390

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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Subject: accounting 

Required: Prepare a departmental contribution to overhead report. Direct expenses Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Phone Total direct expenses Departmental contribution to overhead 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 Phone Total direct expenses Departmental contribution to overhead Earbuds Combined
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 GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 160,000 78,400 81,600 Sales salaries Supplies used Depreciation Equipment Rent Utilities. Share of office department expenses Total expenses Income 22,000 600 1,400 7,110 2,800 13,000 46,910 $ 34,690 Required: |Dinnsin a donartmental contribution to overhead report -Earbuds $ 95,000 58,900 36,100 7,000 300 300 3,600 1,200 8,000 20,400 $ 15,700 Combined $ 255,000 137,300 117,700 29,000 900 1,700 10,710 4,000 21,000 67,310 $ 50,390
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 GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone $ 160,000 78,400 81,600 Sales salaries Supplies used Depreciation Equipment Rent Utilities. Share of office department expenses Total expenses Income 22,000 600 1,400 7,110 2,800 13,000 46,910 $ 34,690 Required: |Dinnsin a donartmental contribution to overhead report -Earbuds $ 95,000 58,900 36,100 7,000 300 300 3,600 1,200 8,000 20,400 $ 15,700 Combined $ 255,000 137,300 117,700 29,000 900 1,700 10,710 4,000 21,000 67,310 $ 50,390
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