Required information Problem 9-2A (Algo) Allocation of indirect expenses to departments LO P2 [The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. Rent Advertising Insurance Total $ 45,000 25,000 10,000 $ 80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Department Housewares Sporting Total Square Feet 2,040 1,960 4,000 Sales $ 220,000 280,000 $ 500,000 Value of Insured Assets $ 44,000 56,000 $ 100,000

Required information Problem 9-2A (Algo) Allocation of indirect expenses to departments LO P2 [The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. Rent Advertising Insurance Total $ 45,000 25,000 10,000 $ 80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Department Housewares Sporting Total Square Feet 2,040 1,960 4,000 Sales $ 220,000 280,000 $ 500,000 Value of Insured Assets $ 44,000 56,000 $ 100,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.9E: Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports...

See similar textbooks

Similar questions

Home office BranchSales P 365,000 P174,000Shipment to branch 90,000Purchases from outsiders 220,000 35,000Advertising expense 13,700 2,500Salaries and Commission 35,000 9,500Rent Expense 10,000 2,000Miscellaneous expense 3,300 500Shipment from home Office 112,500Inventories, January 1:Home Office 85,000Branch:From outsiders 9,500From home office at 2018 billed price30,000Inventories, December 31:Home Office 65,000BranchFrom outsider 6,500From Home office at 2018 billed price30,0001. The branch inventory at cost on December 31, 2021 is:a. P30,500 c. P70,000b. 31,500 d. 36,5002. The combined net income of the Home Office and the Branch on December 31, 2021 is:a. P111,000 c. P250,500b. 63,000 d. 174,000
Item5 eBookPrintReferencesCheck my workCheck My Work button is now disabled1Item 5 Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 36,480,000 Net operating income $ 2,808,960 Average operating assets $ 8,000,000 The company's minimum required rate of return 16% The division's residual income is closest to: Multiple Choice $2,808,960 $4,088,960 $(3,027,840) $1,528,960
Problem #1:The AWIT Corporation is maintaining a branch in Baguio. During the year, the homeoffice shipped goods to the branch at a cost of ₱120,000. The branch submitted to thehome office the following report summarizing its operations for the period endedDecember 31, 2020.Sales (30% on account) ₱196,000Expenses (50% of which still unpaid) 50,000Purchases 25,000Shipments from Home Office 150,000Inventory, 1/1/2020 (30% from outsiders) 30,000Inventory, 12/31/2020 (60% from Home Office) 90,000Remittance to Home Office 60,000The branch Cost of Sales and Net Income/Loss in as far as the home office isconcerned are:
Question 1The Alpha Manufacturing Co. present the following information for the year ended 31st December 2019 Sales: $ 252000 Commission: 2500Sales Returns and Allowances: 2000 Advertising: 4000 Purchases of Raw Material: 96200Depreciation of Sales Office: 2200 Carriage In: 300 Traveling Expense: 1800 Direct Labour: 40000 Bad Debts : 700 Purchases Return: 1200 Salaries: 2000 Indirect Material: 4300Stationery Used: 1125Indirect Labour : 4700Rent of Office: 1500 Rent of Factory: 3500Interest Received: 1110 Factory Taxes: 1150 Interest Paid: 275 Insurance of Factory Building: 1500Depreciation of Plant and Machinery: 3425 Heat, Light and Power: 2225INVENTORIES January 1 Dec. 31Finished Goods …………………….. $ 17600 $15300Work in Progress ……………………. 16100 13900Materials ……………………………… 9000 15300 Required:Cost of goods sold StatementIncome Statement.
5. Tub Corp. reports operating expenses in two categories: (1) selling, and (2) general and administrative. The adjusted trial balance included the following expense and loss accounts:Accounting and legal fees P120,000Advertising 150,000Freight-out 80,000Interest 70,000Loss on sale of long-term investment 30,000Officers' salaries 225,000Rent for office space 220,000Sales salaries and commissions 140,000 One-half of the rented premises is occupied by the sales department.Tub's total selling expenses are P_________
please dont provide answer in image format thank you Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31in (000)'s 20X5 20X4Cash $ 5,100 $ 4,800 Accounts Receivable $ 9,010 $ 6,100 Inventory $ 10,400 $ 14,000 Prepaid Expenses $ 1,950 $ 1,020 Equipment $ 58,500 $ 59,900 Accumulated Depreciation - equipment $ (33,100 ) $ (32,000 )Total Assets $ 51,860 $ 53,820 Account Payable $ 7,000 $ 11,400 Interest Payable $ 350 $ 110 Income taxes payable $ 650 $ 500 Dividends Payable $ 2,400 $ 3,200 Long-term Notes Payable $ 17,500 $ 17,000 Common shares $ 22,000 $ 20,000 Retained Earnings $ 1,960 $ 1,610 Total Liabilities &…
The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 .10 .30 .25 .20 .15 S2 80,000 .20 .40 .20 .20 S3 45,000 .60 .35 .05 P1 78,000 P2 99,000 P3 45,000 __________24. What amount will be allocated by S2 to P2 under direct method?
Profit center responsibility reporting On-Demand Sports Co. operates two divisions—the Action Sports Division and the Team Sports Division. The following income and expense accounts were provided as of November 30. 20Y1, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded The bases to be used in allocating expenses, together with other essential information, are as follows a.Advertising expense—incurred al headquarters, charged back to divisions on the basis of usage: Action Sports Division. $1,200,000; Team Sports Division, $1,800,000. b. Transportation expense—charged hack lo divisions at a charge rale of $18.50 per bill of lading: Action Sports Division, 14.000 bills of lading; Team Sports Division. 21.400 bills of lading. C. Accounts receivable collection expense—incurred al headquarters, charged back to divisions at a charge rate of $9-00 per invoice: Action Sports Division. 32.000 sales invoices; Team Sports Division, 12.500 sales invoices. d. Warehouse expense—charged back to divisions on the basis of floor space used in storing division products: Action Sports Division. 120.000 square feet; Team Sports Division. 80.000 square feet. Prepare divisional income statements with two column headings: Action Sports Division and Team Sports Division. Provide supporting schedules for determining service department charges.
Problem 7-5A a, b1-b3, c (Part Level Submission) (Video) Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $210,600 and the following divisional results. Division I II III IV Sales $245,000 $197,000 $504,000 $450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $ (27,400) $ (58,000) $145,000 $151,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 73 % 91 % 82 % 75 % Selling and administrative expenses 39 59 50 61 Discontinuance of any division would save 50% of the fixed costs and expenses for that division.Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or…
22. Nottage Company has four separate operating segments: East North West South Sales to Outsiders 188,000 126,000 65,000 43,000 Intersegment Transfer 16,000 6,000 13,000 8,000 What revenue amount must one customer generate before it must be identified as a major customer? a. $39,600 b.$42,200 c.$46,500 d.$49,200
PB6-5 Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6-6] [The following information applies to the questions displayed below.] Emily’s Greenhouse Corporation is a local greenhouse organized 10 years ago as a corporation. The bookkeeper prepared the following statement at year-end (assume that all amounts are correct, but note the incorrect format): EMILY’S GREENHOUSE CORPORATION Profit and Loss December 31 Debit Credit Net Sales $ 522,200 Cost of Goods Sold $ 323,000 Salaries and Wages Expense 69,000 Office Expenses 16,000 Travel Expenses 4,000 Income Tax Expense 33,060 Net Profit 77,140 Totals $ 522,200 $ 522,200 PB6-5 Part 2 Compute the gross profit percentage. (Round your answer to 1 decimal place.)
ABC Factory Balance Sheet Year 1 % Year 2 % Assets Cash 43,500 8.84 55,000 14.25 Inventory 22,000 4.47 23,500 6.09 Equipment and fixures 380,000 77.24 255,000 66.08 Supplies 3,800 0.77 4,100 1.06 Prepaid expenses 9,200 1.87 12,500 3.24 Store design/Buildout 27,000 5.49 27,000 7 Loan Fee 4,000 0.81 5,500 1.42 Advertising and Marketing 2,500 0.51 3,300 0.86 Total assets 492,000 100 385,900 100 Bank Loan 150,000 30.49 170,000 44.05 Other liability (Balancing figure) 292,000 59.35 170,900 44.29 Owner contribution 50,000 10.16 45,000 11.66 Total equity and liability 492,000 100 385,900 100 ABC Factory Income Statement Particular Year 1 Year 2 Revenue 50,000 52,500 Operating Expenses Rent 4200 4,410 Insurance 1000 1,050 License and Registration 2000 2,100 Wages 20000…