Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirectexpenses. The manufacturer is considering ellminsting its Electric Guitar department because it shows a loss.For Year Ended December 31SalesCost of goods soldGross profitExpensesAdvertisingDepreciation EquipmentSalariesSupplies usedRentUtilitiesTotal expensesIncome (loss)Departmental Income StatementsRequired 1 Required 2Acoustic$ 183,30044,87558,425For Year Ended December 31Direct expenses4,99510,00019,001,9487,8953,83546,945$ 11,488Total direct expensesDepartmental contribution to overheadElectric1. Prepares departmental contribution to overhead report2. Based on contribution to overhead, should the electric guitar department be eliminated?Complete this question by entering your answers in the tabs below.Prepare a departmental contribution to overhead report.Departmental Contribution to OverheadAcousto$ 83,40046,95836,4588,54017,5881,7786,0382,58048,748$ (4,200)ElectricCombined

The business incurs various expenses but the direct expenses are those that are directly related to…

Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer la considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 183,300 44,875 58,425 Electric $ 83,400 46,958 36,458 Required 1 Required 2 4,905 4,328 10,000 8,540 19,808 17,500 1,940 1,770 7,885 5,030 3,035 2,589 46,945 48,748 $ 11,488 $ (4,200) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead

Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer la considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 183,300 44,875 58,425 Electric $ 83,400 46,958 36,458 Required 1 Required 2 4,905 4,328 10,000 8,540 19,808 17,500 1,940 1,770 7,885 5,030 3,035 2,589 46,945 48,748 $ 11,488 $ (4,200) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...

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Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Required 1 Required 2 Acoustic $ 102,100 44,975 57,125 For Year Ended December 31 Gross profit Direct expenses 15,015 10,100 20,100 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Prepare a departmental contribution to overhead report. 1,960 7,065 2,995 47,235 $ 9,890 Complete this question by entering your answers in the tabs below. Total direct expenses Departmental contribution to overhead Departmental Contribution to Overhead $ Acoustic…
Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Complete this question by entering your answers in the tabs below. Required A Required B STUART COMPANY Income Statements for Year 2 Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Cost of goods sold Sales commissions Advertising expense Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ $ 163,000 (128,000) (17,000) 0 B $242,000 $256,000 (78,000) (28,000) (86,000)…
Shanika Company Income Statement For the Year Ended December 31, 20Y6 Cost of good sold: Operating expenses: Administrative expenses: Selling expenses: Total operating expenses
INFO FOR QUESTION IN IMAGES Prepare an income statement for the year. Superior Company Income Statement [ ] [ ] [ ] [ ] [ ] Selling and administrative expenses: [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] Prepare a schedule of cost of goods sold. Superior Company Schedule of Cost of Goods Sold [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ]…
Assignment 3- COGM i C aw Margaret Rosenthal, accountant for Russell Manufacturing Company, prepared the following income statement for the quarter ending December 31, 2019. Sales Purchases of materials (1) Payroll (2) Advertising Administrative travel. Manufacturing utilities Facility rental (3) Depreciation (4) Sales commissions Annual insurance (manufacturing) Office utilities Management salaries (5) Net income Notes: (1) 80% of the materials were direct (2) 70% direct labour; 30% indirect labour (3) 80% related to manufacturing (4) 75% related to manufacturing (5) 30% related to manufacturing 4 Furthermore, Rosenthal compiled the following information with respect to inventories for the quarter (note that the company does not maintain inventories of indirect materials). Direct materials Work in process Finished goods Direct materials: Required: 1. This part of the question is not part of your Connect assignment. 2. Prepare a cost of goods manufactured statement for the quarter.…
Problem 1. Maple Company started the year with no inventory.During the year, it purchased two identical inventory items at different times.The first unit cost $800 and the second, $700. One of the items was sold duringthe year.Required:Based on this information, howmuch product cost would be allocated to cost of goods sold and endinginventory, assuming use of: a. LIFOb. FIFOc. Weighted average Problem 2. Teague Company purchased a new machine on January 1,2012, at a cost of $150,000. The machine is expected to have an eight-year lifeand a $15,000 salvage value. The machine is expected to produce 675,000finished products during its eight-year life. Smith produced 70,000 units in2012 and 110,000 units during 2013. Required: 1) Determine the amount of depreciation expense to be recorded on the machinefor the years 2012 and 2013 under each of the following methods
The following is the year ended data for Tiger Company: Sales Revenue Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Selling Expenses Administrative Expenses What is the cost of goods available for sale? O A. $5,700 OB. $29,300 OC. $26,700 O D. $24,300 $51,000 28,000 1,300 2,600 15,100 3,500
(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16, 750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9, 800/12, 750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300 / 16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8, 000/ 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27, 500/53, 500 Indirect labor 12, 150 / 12, 260 Repairs-Factory equipment 4, 820/2, 350 Raw materials purchases 47,000/67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15,800 / 23,450
ngageNOWv2 | Online teachin X + com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A ★ Income Statement for a Manufacturing Company Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter. $60,000 $19,800 Finished goods inventory, June 1 Cost of goods manufactured (e) 69,300 270,000 (c) 516 (a) $188,100 $108,900 Cost of finished goods available for sale Finished goods inventory, June 30 Cost of goods sold 64,000 39,500 (f) (b) (d) $100,200 a. $ 8:27, D 5/2/20 b. C. d. e. f. $ Ś $ $ -- OL i ال اے الكل L 9
Consider the following information for Fair Wind Yachts Inc., a manufacturer of sailboat rigging, blocks, and cordage. Advertising expenses Depreciation expense-administrative office Depreciation expense-plant and equipment Depreciation expense-delivery trucks Materials inventory, beginning Materials inventory, ending Direct materials purchases Direct labor Indirect labor Finished goods inventory, beginning Finished goods inventory, ending Insurance on plant Heat and light for plant Repairs on plant building Supervisor's salary-plant Supplies-plant Supplies-administrative office Work-in-process inventory, beginning Work-in-process inventory, ending Sales representatives' salaries Sales revenue $ 159,500 78,800 329,500 51,650 25,500 32,250 457,500 550,000 288,000 56,900 46,800 37,700 25,800 40,750 100, 850 133,900 80,850 35,750 42,800 329,750 3,082,000 Required: Prepare a statement of cost of goods manufactured and an income statement for Fair Wind Yachts for the year ended December 31.
REVISIO ent Attempt in Progress me following are the components in Crane Company's income statement. etermine the missing amounts. ) -) D $ Sales Revenue Textbook and Media for stee $81,300 $114,500 $ Cost of Goods Sold $78,700 $74,200 $ Gross Profit $30,600 $82,300 $ $ Operating Expenses $44,000 Net Income 0 of 5 used $16,200 $24,800 Submit Answer
INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood Thomas operates the business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20--: REQUIRED 1. Prepare an income statement showing departmental direct operating margin and total operating income. 2. Calculate departmental direct operating margin percentages.