The following information relates to Pure Corporation for the past accounting period. Service Department A Direct Costs P80,000 60,000 Producing Department 0n C D 15,000 n00.ca4. 20,00 0 Proportion of service by A to: 900,0o 10% 60% 30% D 900 Proportion of service by B to A 30% 20% 50% D. 14.. Using the simultaneous method, Dept. A's allocated to Dept. C is a. Р40,000 b. P58,800 с. Р60,619 d. P98,000

The following information relates to Pure Corporation for the past accounting period. Service Department A Direct Costs P80,000 60,000 Producing Department 0n C D 15,000 n00.ca4. 20,00 0 Proportion of service by A to: 900,0o 10% 60% 30% D 900 Proportion of service by B to A 30% 20% 50% D. 14.. Using the simultaneous method, Dept. A's allocated to Dept. C is a. Р40,000 b. P58,800 с. Р60,619 d. P98,000

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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The following partial financial information (in thousands of dollars) is available for Thole, Incorporated: Corporate overhead costs at Thole are allocated to divisions based on relative sales. Required: a. Complete the income statements for both divisions and the corporation as a whole. Note: Enter your answers in thousands. Enter all values as positive value. Round your answers to 1 decimal place. Sales Cost of sales Gross margin Selling, General and Administrative Allocated corporate costs Operating income Tax expense (@20%) After-tax income Gross margin percentage Operating margin Profit margin Pacific 20.0 (Thousands of Dollars) Southern 40.00 % 20.00 % 16.00 % 50.00 % 36.00 % 28.80 % $ Total 100.0 984.0 48.00 % 32.80 % 26.24 %
Benson Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions BENSON COMPANY Income Statements for Year 2 Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss). Complete this question by entering your answers in the tabs below. Required A Required B A $ 169,000 (130,000) (21,000) 18,000 (43,000) (5,000) $ (30,000) B $ 238,000 (81,000) (23,000) 134,000 (37,000) (14,000) $ 83,000 с $ 247,000 (83,000) (31,000) 133,000 (26,000) 0 Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ 107,000
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