Meman 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.SalesCost of goods soldGross profitExpensesSales salariesSupplies usedDepreciation-EquipmentRentUtilitiesGARCIA COMPANYDepartmental Income StatementsFor Year Ended December 31Share of office department expensesTotal expensesIncomePhone$ 250,000122,500127,500Earbuds$ 95,00058,900Combined$ 345,000181,40036,100163,60020,0008,70028,7008008001,6001,5005002,0007,0303,48010,5102,9002,2005,10012,5009,50022,00044,73025,18069,910$ 82,770$ 10,920$ 93,690Required:Prepare a departmental contribution to overhead report.Garcia CompanyDepartmental Contribution to OverheadFor Year Ended December 31Gross profitDirect expensesTotal direct expensesDepartmental contribution to overheadPhoneEarbudsCombined

1. Phone Department:- Gross profit: Sales - Cost of goods sold = $250,000 - $122,500 = $127,500-…

Answered: Garcia Company has two operating…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 2CE

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Subject: accounting
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Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit Credit $ 79,000 48,000 29,000 0 12,000 4,000 $ 9,200 12,200 40,000 82,000 197,600 107,000 27,000 35,000 $ 341,000 $ 341,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,100 direct materials to Job 402. $ 7,400 direct materials…
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