The following cost data pertain to the operations of Montgomery Department Stores, incorporated, for the month of JulyCorporate legal office salariesApparel Department cost of sales-Evendale StoreCorporate headquarters building leaseStore manager's salary-Evendale StoreApparel Department sales commission-Evendale StoreStore utilities-Evendale StoreApparel Department manager's salary-Evendale StoreCentral warehouse lease costJanitorial costs-Evendale Store$ 56,000$ 90,000$ 48,000$ 12,000$ 7,000$ 11,000$ 8,000$ 15,000$9,000The Evendale Store is one of many stores owned and operated by the company. The Apparel Department is one of many departmentsat the Evendale Store. The central warehouse serves all of the company's stores.Required:1. What is the total amount of the costs listed above that are direct costs of the Apparel Department?2. What is the total amount of the costs listed above that are direct costs of the Evendale Store?3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to totes departmentsales?1. Total direct costs for the Apparel Department2. Total direct costs for the Evendale Store3. Total direct costs for the Apparel Department that are also variable costs

1. Particulars Amount ($) Apparel Department cost of sales-Evendale Store 90,000 Apparel…

The following cost data pertain to the operations of Montgomery Department Stores, incorporated, for the s Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale store Stere utilities-Evendale store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $546,000 $ 90,000 $ 40,000 $ 12,000 $7,000 $ 11,000 $8,000 $ 35,000 $ 9,000 The Evendale Store is one of many stores owned and operated by the company The Apparel Department i at the Evendale Store. The central warehouse serves all of the company's stores 1. Total direct costs for the Apparel Department 2. Total direct costs f the Evendale Store 3. Total direct costs for the Apparel Department that are also variable coses Aly Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to tuts departe sales?

The following cost data pertain to the operations of Montgomery Department Stores, incorporated, for the s Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale store Stere utilities-Evendale store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $546,000 $ 90,000 $ 40,000 $ 12,000 $7,000 $ 11,000 $8,000 $ 35,000 $ 9,000 The Evendale Store is one of many stores owned and operated by the company The Apparel Department i at the Evendale Store. The central warehouse serves all of the company's stores 1. Total direct costs for the Apparel Department 2. Total direct costs f the Evendale Store 3. Total direct costs for the Apparel Department that are also variable coses Aly Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to tuts departe sales?

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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Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). The income statement for Marley's Manufacturing is shown below: Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Dept. B Sales $23,000 $51,000 Cost of goods sold 11,040 27,030 Gross profit $11,960 $23,970 Utility expenses 1,150 3,060 Wages expense 5,750 10,710 Costs allocated from corporate 2,070 14,790 Total expenses $8,970 $28,560 Operating income/(loss) in dollars $2,990 -$4,590 Operating income/(loss) in percentage 13 % % 6- Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley's Manufacturing. Determine the operating income for department B, assuming department A "sold" department B 1,000 units during the month and…
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 69,000 Apparel Department cost of sales—Evendale Store $ 117,900 Corporate headquarters building lease $ 63,900 Store manager’s salary—Evendale Store $ 18,000 Apparel Department sales commission—Evendale Store $ 10,000 Store utilities—Evendale Store $ 13,400 Apparel Department manager’s salary—Evendale Store $ 12,800 Central warehouse lease cost $ 23,800 Janitorial costs—Evendale Store $ 11,200 The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company’s stores. Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3.…
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT HR IT tickets 0 Employees 18 1,555 0 Publishing 2,488 27 Binding 2,177 45 Department direct costs $ 154,400 $ 248,490 $ 432,200 $ 395,500 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department costs IT HR Total Cost Allocation To: IT HR Publishing Binding
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Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's ManufacturingIncome StatementMonth Ending August 31, 2018
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