please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirectexpenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss.Departmental Income StatementsFor Year Ended December 31SalesCost of goods soldGross profitExpensesAdvertisingDepreciation-EquipmentSalariesSupplies usedRentUtilitiesTotal expensesIncome (loss)AcousticElectric$ 101,800$ 83,30045,57546,75056,22536,5504,9854,32010,1108,58019,70017,7001,9301,7907,0955,9702,9452,60046,76540,960$ 9,460 $ (4,410)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.Required 1 Required 2Prepare a departmental contribution to overhead report.Departmental Contribution to OverheadFor Year Ended December 31AcousticElectricCombinedGross profitDirect expensesTotal direct expenses000Departmental contribution to overhead$0 $0 $0Required 1Required 2 >

AcousticElectricCombined1Departmental Contribution to Overhead$24,485$8,480$32,965 2The electric…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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…
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 GUITARSDepartmental Income StatementsFor Year Ended December 31, 2019 Acoustic Electric Sales $ 101,800 $ 83,600 Cost of goods sold 45,175 46,750 Gross profit 56,625 36,850 Operating expenses Advertising expense 5,065 4,330 Depreciation expense—Equipment 10,130 8,550 Salaries expense 20,100 17,300 Supplies expense 1,950 1,770 Rent expense 7,085 6,020 Utilities expense 2,995 2,610 Total operating expenses 47,325 40,580 Net income (loss) $ 9,300 $ (3,730 ) 1. Prepare a departmental contribution report that shows each department’s contribution to overhead.2. Based on contribution to…
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. For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Departmental Income Statements Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Required 1 Required 2 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? For Year Ended December 31 Direct expenses Acoustic $ 102,200 45,375 56,825 Complete this question by entering your answers in the tabs below. Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead Total direct expenses Departmental contribution to overhead 5,065 10,070 19,700 1,950 7,015 2,965 46,765 $ 10,060 $ (4,370) $ Acoustic…
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) Acoustic $ 102,500 44,575 57,925 4,985 10,120 19,400 2,010 7,095 3,015 46,625 $ 11,300 Electric $ 84,600 47,350 37,250 4,300 8,600 17,000 1,750 5,976 2,610 41,010 $ (3,780) 1. Prepare a departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated?
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 Acoustic Electric Sales $ 102,900 $ 83,300 Cost of goods sold 44,175 47,350 Gross profit 58,725 35,950 Expenses Advertising 4,995 4,270 Depreciation—Equipment 10,080 8,560 Salaries 19,800 17,200 Supplies used 2,000 1,700 Rent 7,055 6,030 Utilities 2,965 2,620 Total expenses 46,895 40,380 Income (loss) $ 11,830 $ (4,430) Prepare a departmental contribution to the overhead report. Based on contribution to overhead, should the electric guitar department be eliminated?
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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. For Year Ended December 31 Acoustic Electric Sales $ 102,200 $ 84,000 Cost of goods sold 43,975 47,550 Gross profit 58,225 36,450 Expenses Advertising 4,995 4,290 Depreciation—Equipment 10,100 8,570 Salaries 20,200 17,300 Supplies used 1,990 1,770 Rent 7,035 5,950 Utilities 2,975 2,640 Total expenses 47,295 40,520 Income (loss) $ 10,930 $ (4,070)
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 Acoustic Sales $ 102,900 Electric $ 84,000 Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses 44,975 47,550 57,925 36,450 4,985 4,320 10,080 8,540 20,100 17,800 2,010 1,780 7,095 5,950 2,995 2,640 47,265 41,030 Income (loss) $ 10,660 $ (4,580) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?
Elegant Decor Company’s management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company’s departmental income statements show the following. ELEGANT DECOR COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019 Dept. 100 Dept. 200 Combined Sales $ 436,000 $ 290,000 $ 726,000 Cost of goods sold 262,000 207,000 469,000 Gross profit 174,000 83,000 257,000 Operating expenses Direct expenses Advertising 17,000 12,000 29,000 Store supplies used 4,000 3,800 7,800 Depreciation—Store equipment 5,000 3,300 8,300 Total direct expenses 26,000 19,100 45,100 Allocated expenses Sales salaries 65,000 39,000 104,000 Rent expense…

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