Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Question
Chapter 24, Problem 24.3APE
To determine
Income from operations: Revenue generated mainly from business operations, after the operating expenses are being paid, is referred to as income from operations.
To determine: The income from operations for S Division and W Division
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Divisional Income Statements
The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8:
Cost of goods sold:
Support department allocations:
Commercial Division
$459,310
Commercial Division
$62,630
Residential Division
214,350
Residential Division
37,130
Administrative expenses:
Sales:
Commercial Division
$83,510
Commercial Division
$695,920
Residential Division
76,550
Residential Division
382,760
Prepare divisional income statements for Ruiz Industries Inc.
Ruiz Industries Inc.
Divisional Income Statements
For the Year Ended November 30, 20Y8
Commercial Division Residential Division
%24
Divisional Income Statements
The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8:
Cost of goods sold:
Support department allocations:
Commercial Division
$542,410
Commercial Division
$73,970
Residential Division
262,330
Residential Division
45,440
Administrative expenses:
Sales:
Commercial Division
$98,620
Commercial Division
$821,840
Residential Division
93,690
Residential Division
468,450
Prepare divisional income statements for Ruiz Industries Inc.
Ruiz Industries Inc.
Divisional Income Statements
For the Year Ended November 30, 20Y8
Commercial Division
Residential Division
Sales
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?
Cost of goods sold
?
?
Gross profit
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?
Administrative expenses
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?
Operating income before support department allocations
?
?
Support department allocations
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Operating income
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Divisional Income Statements
The following data were summarized from the accounting records for Ruiz Industries Inc. for the year ended November 30, 20Y8:
Cost of goods sold:
Support department allocations:
Commercial Division
$3,400,000
Commercial Division
$800,000
Residential Division
1,800,000
Residential Division
200,000
Administrative expenses:
Sales:
Commercial Division
$750,000
Commercial Division
$6,120,000
Residential Division
375,000
Residential Division
2,850,000
Prepare divisional income statements for Ruiz Industries Inc.
Ruiz Industries Inc.Divisional Income StatementsFor the Year Ended November 30, 20Y8
Commercial Division
Residential Division
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Chapter 24 Solutions
Accounting
Ch. 24 - Differentiate between centralized and...Ch. 24 - Differentiate between a profit center and an...Ch. 24 - Prob. 3DQCh. 24 - What is the major shortcoming of using income from...Ch. 24 - In a decentralized company in which the divisions...Ch. 24 - How does using the return on investment facilitate...Ch. 24 - Why would a firm use a balanced scorecard in...Ch. 24 - What is the objective of transfer pricing?Ch. 24 - When is the negotiated price approach preferred...Ch. 24 - When using the negotiated price approach to...
Ch. 24 - Budgetary performance for cost center Caroline...Ch. 24 - Budgetary performance for cost center Conley...Ch. 24 - Service department charges The centralized...Ch. 24 - Service department charges The centralized...Ch. 24 - Prob. 24.3APECh. 24 - Income from operations for profit center Using the...Ch. 24 - Profit margin, investment turnover, and ROI Cash...Ch. 24 - Profit margin, investment turnover and ROI Briggs...Ch. 24 - Residual income The Consumer Division of Galena...Ch. 24 - Residual income The Commercial Division of Herring...Ch. 24 - Transfer pricing The materials used by the North...Ch. 24 - Transfer pricing The materials used by the...Ch. 24 - Budget performance reports for cost centers...Ch. 24 - Divisional income statements The following data...Ch. 24 - Prob. 24.3EXCh. 24 - Prob. 24.4EXCh. 24 - Service department charges In divisional income...Ch. 24 - Service department charges and activity bases...Ch. 24 - Divisional income statements with service...Ch. 24 - Corrections to service department charges for a...Ch. 24 - Profit center responsibility reporting Glades...Ch. 24 - Return on investment The income from operations...Ch. 24 - Residual income Based on the data in Exercise...Ch. 24 - Determining missing items in return computation...Ch. 24 - Profit margin, investment turnover, and return on...Ch. 24 - Prob. 24.14EXCh. 24 - Determining missing items in return and residual...Ch. 24 - Determining missing items from computations Data...Ch. 24 - Prob. 24.17EXCh. 24 - Balanced scorecard for a service company American...Ch. 24 - Building a balanced scorecard Hit-n-Kun Inc. owns...Ch. 24 - Prob. 24.20EXCh. 24 - Prob. 24.21EXCh. 24 - Budget performance report for a cost center...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Prob. 24.6APRCh. 24 - Budget performance report for a cost center The...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Prob. 24.6BPRCh. 24 - Prob. 24.1CPCh. 24 - Prob. 24.3CPCh. 24 - Prob. 24.4CPCh. 24 - Evaluating divisional performance The three...Ch. 24 - Evaluating division performance Last Resort...
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