College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
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
$
$
$
$
$
$
$
$
Chapter 25 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 25 - A department that incurs costs and generates...Ch. 25 - Departmental gross profit is the difference...Ch. 25 - Prob. 3TFCh. 25 - Direct expenses are operating expenses incurred...Ch. 25 - Departmental direct operating margin is the...Ch. 25 - Prob. 1MCCh. 25 - The difference between a departments net sales and...Ch. 25 - Prob. 3MCCh. 25 - The difference between a departments gross profit...Ch. 25 - The difference between a departments gross profit...
Ch. 25 - Prob. 1CECh. 25 - Prob. 2CECh. 25 - Prob. 3CECh. 25 - Prob. 1RQCh. 25 - Prob. 2RQCh. 25 - Prob. 3RQCh. 25 - Prob. 4RQCh. 25 - Prob. 5RQCh. 25 - Prob. 6RQCh. 25 - Prob. 7RQCh. 25 - Prob. 8RQCh. 25 - Distinguish between departmental gross profit,...Ch. 25 - Prob. 10RQCh. 25 - GROSS PROFIT SECTION OF DE PART MENT AL INCO ME ST...Ch. 25 - ALLOCATING OPERATING EXPENSESQUARE FEET Weaverling...Ch. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Mercado...Ch. 25 - COMPUTING OPERATING INCOME The sales, cost of...Ch. 25 - Prob. 6SEACh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - INCOME STATE MENT WITH DEPARTMENTAL OPERATING...Ch. 25 - INCOME STATEMENT WITH DEPART MENTAL DIRECT...Ch. 25 - Prob. 10SPACh. 25 - GROSS PROFIT SECTION OF DEPART MENTAL INCOME...Ch. 25 - Prob. 2SEBCh. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Herbert...Ch. 25 - Prob. 5SEBCh. 25 - Prob. 6SEBCh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - Prob. 8SPBCh. 25 - Prob. 9SPBCh. 25 - Prob. 10SPBCh. 25 - Prob. 1MYWCh. 25 - Prob. 1ECCh. 25 - MASTERY PROBLEM Bobs Acme Supermarket has been in...Ch. 25 - CHALLENGE PROBLEM This problem challenges you to...
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