Below are departmental income statements for a guitar
manufacturer. The manufacturer is considering eliminating its
electric guitar department since it has a net loss. The company
classifies advertising, rent, and utilities expenses as
indirect.
WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 |
|||||||
Acoustic | Electric | ||||||
Sales | $ | 103,100 | $ | 84,600 | |||
Cost of goods sold | 43,975 | 46,850 | |||||
Gross profit | 59,125 | 37,750 | |||||
Operating expenses | |||||||
Advertising expense | 5,035 | 4,350 | |||||
Depreciation expense—equipment | 10,090 | 8,580 | |||||
Salaries expense | 19,900 | 17,100 | |||||
Supplies expense | 1,980 | 1,740 | |||||
Rent expense | 7,035 | 6,040 | |||||
Utilities expense | 3,035 | 2,570 | |||||
Total operating expenses | 47,075 | 40,380 | |||||
Net income (loss) | $ | 12,050 | $ | (2,630 | ) | ||
1. Prepare a departmental contribution report that
shows each department’s contribution to overhead.
|
INCOME STATEMENT SHOWING DEPARTMENTAL CONTRIBUTION TO OVERHEAD | |||||
FOR YEAR ENDED DECEMBER 31,2017 | AMOUNT IN $ | AMOUNT IN $ | AMOUNT IN $ | ||
ACOUSTIC DEPT | ELECTRIC DEPT | TOTAL | |||
SALES | 103100 | 84600 | 187700 | ||
COST OF GOODS SOLD | -43975 | -46850 | -90825 | ||
GROSS PROFIT | 59125 | 37750 | 96875 | ||
DIRECT EXPENSES | |||||
DEPRECIATION EXPENSE -EQUIPMENT | 10090 | 8580 | 18670 | ||
SALARIES EXPENSE | 19900 | 17100 | 37000 | ||
SUPPLIES EXPENSE | 1980 | 1740 | 3720 | ||
TOTAL DIRECT EXPENSES | 31970 | 27420 | 59390 | ||
DEPARTMENTAL CONTRIBUTION TO OVERHEADS | 0 | 0 | 0 | ||
INDIRECT EXPENSES | |||||
ADVERTISING EXPENSE | 5035 | 4350 | 9385 | ||
RENT EXPENSE | 7035 | 6040 | 13075 | ||
UTILITIES EXPENSE | 3035 | 2570 | 5605 | ||
TOTAL INDIRECT EXPENSE | 15105 | 12960 | 28065 | ||
NET INCOME | 12050 | -2630 | 9420 |
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic $102,500 Electric $83,100 Sales Cost of goods sold Gross profit Operating expenses Advertising expense Depreciation expense-equipment Salaries expense Supplies expense 45,075 57,425 47,050 36,050 4,300 8,520 17,300 1,740 5,950 2,620 40,430 $(4,380) 4,995 10,130...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $ 103,400 $ 83,000 Cost of goods sold 43,975 47,250 Gross profit 59,425 35,750 Operating expenses Advertising expense 5,025 4,320 Depreciation expense—equipment 10,090 8,560 Salaries expense 19,400 17,800 Supplies expense 1,980 1,790...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $102.600 $85,000 Cost of goods sold 43,775 47.450 Gross profit 58,825 37,550 Operating expenses Advertising expense 5.015 4,320 Depreciation expense-equipment 10.110 8.580 Salaries expense 19,400 17.400 Supplies expense 1.990 1,790 Rent expense...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. Electric $84, 700 46.950 37,750 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $103.300 Cont of goods sold 44,975 Gross profit 58,325 Operating expenses Advertising expense 5,065 Depreciation expense-equipment 10,140 Salarios expense 19,400 Supplies expense 2.010 Rent expense 7.075 Utilities expense...
Below are departmental Income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $101,999 $84,400 Cost of goods sold 45,375 47,150 Gross profit 56,525 37,250 Operating expenses Advertising expense 5,065 4,270 Depreciation expense-equipment 10,079 8,580 Salaries expense 19,700 17,500 Supplies expense 1,960 1,710 Rent expense...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. Electric $84,600 46,950 37,650 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Sales $102,900 Cost of goods sold 43,875 Gross profit 59,025 Operating expenses Advertising expense 5,005 Depreciation expense-Equipment 10,130 Salaries expense 20, 300 Supplies expense 2,010 Rent expense 7,025 Utilities expense...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2019 Acoustic Electric Sales $ 102,100 $ 84,500 Cost of goods sold 45,475 47,050 Gross profit 56,625 37,450 Operating expenses Advertising expense 5,045 4,300 Depreciation expense—Equipment 10,090 8,600 Salaries expense 19,400 17,100 Supplies expense 1,940 1,780...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering ellminating its electric guitar department since it has a net loss. The company classifles advertising, rent, and utilities expenses as Indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $102,400 $84,200 Cost of goods sold 44,075 46,950 Gross profit 58,325 37,250 Operating expenses Advertising expense 5,065 4,320 Depreciation expense 10,120 equipment 8,530 Salaries expense 19,500 17,400 Supplies expense 1,940 1, 720...
Exercise 9-7 Departmental contribution report LO P3 Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect Electric $84,000 46,850 37,150 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic $102,300 Cost of goods sold 45,375 Gross profit 56,925 Operating expenses Advertising expense 5,045 Depreciation expensesquipment 10.100 Salaries expense 19.700 Supplies expense 1.970...
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect Electric $84.400 36,750 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $ 101,989 Cost of goods sold 44,75 Gross profit 57,825 Operating expenses Advertising expense 5,805 Depreciation expense-equipment 10,850 Salaries expense 20.200 Supplies expense 1.950 Rent expense 7.295 Utilities expense 2,975...