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 8SPA
INCOME STATE MENT WITH DEPARTMENTAL OPERATING INCOME AND TOTAL OPERATING INCOME Alexa Cole owns a business called Alexa’s Bakery. She has divided her business into two departments: breads and pastries. The following information is provided for the fiscal year ended June 30, 20--:
REQUIRED
1. Prepare an income statement showing departmental operating income and total operating income.
2. Calculate departmental operating expense and operating income percentages.
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Williams Company began operations in January 2019 with two operating (selling) departments and one service (office) department. Its departmental income statements follow.
WILLIAMS COMPANYDepartmental Income StatementsFor Year Ended December 31, 2019
Clock
Mirror
Combined
Sales
$
135,000
$
57,500
$
192,500
Cost of goods sold
66,150
35,650
101,800
Gross profit
68,850
21,850
90,700
Direct expenses
Sales salaries
20,050
7,000
27,050
Advertising
1,210
525
1,735
Store supplies used
925
425
1,350
Depreciation—Equipment
1,510
325
1,835
Total direct expenses
23,695
8,275
31,970
Allocated expenses
Rent expense
7,020
3,780
10,800
Utilities expense
2,925
1,575
4,500
Share of office department expenses
10,500
4,500
15,000
Total allocated expenses
20,445
9,855
30,300
Total expenses…
Profit Center Responsibility Reporting
Championship Sports Inc. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:
Sales—Winter Sports Division
$8,900,000
Sales—Summer Sports Division
16,400,000
Cost of Goods Sold—Winter Sports Division
5,000,000
Cost of Goods Sold—Summer Sports Division
9,000,000
Sales Expense—Winter Sports Division
650,000
Sales Expense—Summer Sports Division
1,200,000
Administrative Expense—Winter Sports Division
800,000
Administrative Expense—Summer Sports Division
1,450,000
Advertising Expense
1,090,000
Transportation Expense
192,000
Accounts Receivable Collection Expense
68,000
Warehouse Expense
1,800,000
The bases to be used in allocating expenses, together with other information, are as…
Profit Center Responsibility Reporting
XSport Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:
Sales—Winter Sports Division
$29,295,000
Sales—Summer Sports Division
32,364,000
Cost of Goods Sold—Winter Sports Division
17,577,000
Cost of Goods Sold—Summer Sports Division
18,693,000
Sales Expense—Winter Sports Division
5,022,000
Sales Expense—Summer Sports Division
4,464,000
Administrative Expense—Winter Sports Division
2,929,500
Administrative Expense—Summer Sports Division
2,873,700
Advertising Expense
1,012,000
Transportation Expense
435,000
Accounts Receivable Collection Expense
250,200
Warehouse Expense
2,790,000
The bases to be used in allocating expenses, together with other essential…
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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