Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, if required. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Revenues Cost of goods sold Gross profit DV Operating expenses Operating income before support department allocations Consumer Division Commercial Division

Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, if required. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Revenues Cost of goods sold Gross profit DV Operating expenses Operating income before support department allocations Consumer Division Commercial Division

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

4

Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, if required. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech services department Purchasing department Total support department allocations Operating income Consumer Division Commercial Division QOOQ
Transcribed Image Text:Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, if required. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Revenues Cost of goods sold Gross profit Operating expenses Operating income before support department allocations Support department allocations: Tech services department Purchasing department Total support department allocations Operating income Consumer Division Commercial Division QOOQ
Divisional Income Statements with Support Department Allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services 1,100 computers 700 1,800 computers Revenues Cost of goods sold Operating expenses $1,170,000 450,000 800,000 $2,420,000 The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer $15,500,000 10,000,000 3,000,000 Purchasing 4,000 purchase orders 8,000 12,000 purchase orders Commercial $33,250,000 15,800,000 1,750,000
Transcribed Image Text:Divisional Income Statements with Support Department Allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: Tech Services Department Purchasing Department Other corporate administrative expenses Total expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Consumer Division Commercial Division Total Tech Services 1,100 computers 700 1,800 computers Revenues Cost of goods sold Operating expenses $1,170,000 450,000 800,000 $2,420,000 The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer $15,500,000 10,000,000 3,000,000 Purchasing 4,000 purchase orders 8,000 12,000 purchase orders Commercial $33,250,000 15,800,000 1,750,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS