Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000 Cost of goods sold 242,400 198,400 Selling expenses 153,100 125,300 Service department expenses Purchasing $194,900 Payroll accounting 129,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. a) A Region
Using the data below for the Ace Guitar Company: A Region B Region Sales $638,000 $522,000 Cost of goods sold 242,400 198,400 Selling expenses 153,100 125,300 Service department expenses Purchasing $194,900 Payroll accounting 129,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. a) A Region
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 3CE
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Using the data below for the Ace Guitar Company:
A Region | B Region | ||
Sales | $638,000 | $522,000 | |
Cost of goods sold | 242,400 | 198,400 | |
Selling expenses | 153,100 | 125,300 | |
Service department expenses | |||
Purchasing | $194,900 | ||
Payroll accounting | 129,900 |
Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.
a) A Region
b) B Region
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