Pink Company operates a store with two departments: Videos and Music. Information about those departments follows: Videos Music Sales $370,500 $279,500 Cost of Goods Sold 320,000 175,000 Operating Expenses: Salaries 35,000 25,000 Maintenance 12,000 10,000 Utilities 5,000 4,500 Insurance 4,200 3,700 The company also incurred the following service department charges: Advertising $15,000 Salaries 27,000 Office Expenses 3,200 Service department charges are allocated to the departments as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of Employees Videos 5,000 3 Music 3,000 2 Directions: Use the above information to prepare a Divisional Income Statement for Pink Company for the year ended December 31, 2019.

Pink Company operates a store with two departments: Videos and Music. Information about those departments follows: Videos Music Sales $370,500 $279,500 Cost of Goods Sold 320,000 175,000 Operating Expenses: Salaries 35,000 25,000 Maintenance 12,000 10,000 Utilities 5,000 4,500 Insurance 4,200 3,700 The company also incurred the following service department charges: Advertising $15,000 Salaries 27,000 Office Expenses 3,200 Service department charges are allocated to the departments as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of Employees Videos 5,000 3 Music 3,000 2 Directions: Use the above information to prepare a Divisional Income Statement for Pink Company for the year ended December 31, 2019.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter9: Accounting For Purchases And Cash Payments

Section: Chapter Questions

Problem 1CP

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A retail store has three departments, S, T, and U, and pays for general advertising that benefits all departments. Advertising expense totaled $41,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.) Department Sales $ $ 137,000 T215,050 U 160, 450 Total $ 512,500
retailer has three departments—Housewares, Appliances, and Clothing—and buys advertising that benefits all departments. Advertising expense is $150,000 for the year, and departmental sales for the year follow: Housewares, $356,250; Appliances, $641,250; and Clothing, $427,500. How much advertising expense is allocated to Appliances if allocation is based on departmental sales? a. $37,500 c. $45,000 e. $641,250 b. $67,500 d. $150,000
Can I please get help with this quesiton? The following income statement was drawn from the records of Joel Company, a merchandising firm: JOEL COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (2,000 units × $125) $250,000 Cost of goods sold (2,000 units × $65) (130,000) Gross margin 120,000 Sales commissions (10% of sales) (25,000) Administrative salaries expense (30,000) Advertising expense (20,000) Depreciation expense (24,000) Shipping and handling expenses (2,000 units × $1.00) (2,000) Net income $19,000 Required Reconstruct the income statement using the contribution margin format. Calculate the magnitude of operating leverage. Use the measure of operating leverage to determine the amount of net income Joel will earn if sales increase by 10 percent.
I need help with this: Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 29019 appears below: Carpeting Dept Hard Covering Dept Inventory, January 1, 2019 $60,000 $26,000 Inventory, Dec 31, 2019 50,000 30,000 Net sales 500,000 800,000 Purchases 300,000 560,000 Purchases returns 28,000 8,000 Purchases discounts 16,000 4,000 Transportation in 18,000 14,000 Traceable department expenses 108,000 56,000 Common operating expenses of the firm were $225,000 Required a) Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm. Assume an over effective income tax rate of 20%. Elgin uses a periodic inventory system. b) Calculate the gross profit percentage for each department. c) If the common expenses were allocated 40% to the carpeting department and 60% to the hard covering department, what would the net…
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bartleby, a Learneo, Inc. business

	Videos	Music
Sales	$370,500	$279,500
Cost of Goods Sold	320,000	175,000
Operating Expenses:
Salaries	35,000	25,000
Maintenance	12,000	10,000
Utilities	5,000	4,500
Insurance	4,200	3,700

Department	Square Footage	Number of Employees
Videos	5,000	3
Music	3,000	2