Chapter 25, Problem 1SEB

GROSS PROFIT SECTION OF DEPART MENTAL INCOME STATEMENT Nicole Lawrence and Josh Doyle are partners in a business that sells cheerleading uniforms. They have organized the business, called L and D Uniforms, on a departmental basis as follows: letters, sweaters, and skirts. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows:

Prepare the gross profit section of a departmental income statement for the year ended December 31, 20--. Show the gross profit for each department and for the business in total.