College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 25, Problem 2CE
To determine

Ascertain the operating income and operating income percentage for both the departments.

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The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold:     Service department charges:     Commercial Division $422,110     Commercial Division $57,560   Residential Division 218,470     Residential Division 37,840 Administrative expenses:     Net sales:     Commercial Division $76,750     Commercial Division $639,560   Residential Division 78,030     Residential Division 390,130 Prepare divisional income statements for Jersey Coast Construction Company. Jersey Coast Construction CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y8   Commercial Division Residential Division   $Net sales $Net sales   Cost of goods sold Cost of goods sold   $Gross profit $Gross profit   Administrative expenses Administrative expenses   $Income from operations before service department charges $Income from operations before service department charges…
PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows:    East Division West Division Revenues $1,200,000  $800,000  Operating expenses 950,000  640,000  Service department charges 145,000  72,000  Invested assets 800,000  500,000  ​ (a) Prepare condensed income statements for the past year for each division. (b) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place.
The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold:     Service department charges:     Commercial Division $331,840     Commercial Division $45,250   Residential Division 163,310     Residential Division 28,290 Administrative expenses:     Net sales:     Commercial Division $60,330     Commercial Division $502,790   Residential Division 58,320     Residential Division 291,620 Prepare divisional income statements for DeSalvo Construction Company. JERSEY COAST CONSTRUCTION COMPANY Divisional Income Statements For the Year Ended June 30, 20Y8   Commercial Division Residential Division   $ $         $ $         $ $         $ $

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College Accounting, Chapters 1-27

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