two operating departments (Phone and Earbuds) and one service department (Office). Its departme tements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department ex Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Rent Utilities Share of office department expenses Total expenses Income equired: Earbuds $ 220,000 $ 85,000 $ 305,000 107,800 52,700 112, 200 32,300 144,500 22,500 7,500 30,000 11 950 750 1,500 708 7,040 3,840 2,900 2,500 13,000 6,508 47,890 21,790 $ 10,510 $ 64,310 Combined 160,500 1,700 2,200 10,880 5,400 19,500 69,680 $ 74,820

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income
statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.
Sales
Cost of goods sold
Gross profit
Expenses
Sales salaries
Supplies used
Depreciation-Equipment
Rent
Utilities
Share of office department expenses
Total expenses
Income
GARCIA COMPANY
Departmental Income Statements
For Year Ended December 31
Phone
Gross profit
Direct expenses
$ 220,000
107,800
112, 200
Required:
Prepare a departmental contribution to overhead report.
22,500
950
1,500
7,040
2,900
13,000
47,890
$ 64,318
Total direct expenses
Departmental contribution to overhead
Garcia Company
Departmental Contribution to Overhead
For Year Ended December 31
Phone
Earbuds
Earbuds
$ 85,000
52,700
32,300
7,500
750
708
3,848
2,500
6,508
21,790
$ 10,510
Combined
Combined
$ 305,000
160,500
144,500
30,000
1,708
2,200
10, 880
5,400
19,500
69,680
$ 74,828
Transcribed Image Text:Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. Sales Cost of goods sold Gross profit Expenses Sales salaries Supplies used Depreciation-Equipment Rent Utilities Share of office department expenses Total expenses Income GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Gross profit Direct expenses $ 220,000 107,800 112, 200 Required: Prepare a departmental contribution to overhead report. 22,500 950 1,500 7,040 2,900 13,000 47,890 $ 64,318 Total direct expenses Departmental contribution to overhead Garcia Company Departmental Contribution to Overhead For Year Ended December 31 Phone Earbuds Earbuds $ 85,000 52,700 32,300 7,500 750 708 3,848 2,500 6,508 21,790 $ 10,510 Combined Combined $ 305,000 160,500 144,500 30,000 1,708 2,200 10, 880 5,400 19,500 69,680 $ 74,828
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