The Ski department reports sales of $600,000 and cost of goods sold of $420,000. Its expenses follow. Service department expenses $ 15,500 Office $ 22,600 Direct expenses Salaries Depreciation 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Req 1 $ 117,000 Rent 49,600 Complete this question by entering your answers in the tabs below. Indirect expenses Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Gross profit Direct expenses Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department $ 0 0 0

The Ski department reports sales of $600,000 and cost of goods sold of $420,000. Its expenses follow. Service department expenses $ 15,500 Office $ 22,600 Direct expenses Salaries Depreciation 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Req 1 $ 117,000 Rent 49,600 Complete this question by entering your answers in the tabs below. Indirect expenses Req 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Gross profit Direct expenses Departmental Contribution to Overhead For Year Ended December 31 Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated? Ski Department $ 0 0 0

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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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 330 A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended December…
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