The Ski department reports sales of $630,000 and cost of goods sold of $441,000. Its expenses follow. Service department expenses $ 21,800 Direct expenses Salaries Depreciation Indirect expenses $ 119,000 Rent 43,800 $ 14,400 office 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? Complete this question by entering you o tabr BU
The Ski department reports sales of $630,000 and cost of goods sold of $441,000. Its expenses follow. Service department expenses $ 21,800 Direct expenses Salaries Depreciation Indirect expenses $ 119,000 Rent 43,800 $ 14,400 office 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? Complete this question by entering you o tabr BU
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Ski department reports sales of $630,000 and cost of goods sold of $441,000. Its expenses follow.
Indirect expenses
Service department expenses
$ 21,800
Direct expenses
Salaries
Depreciation
$ 119,000
43,800
Rent
$ 14,400 office
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 Req 2 and 3
Complete this question by entering your answers in the tabs below.
For the Ski department only, prepare a departmental income statement.
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