Hiram Foster, Inc., has two departments: luggage and acces¬

sories. Foster’s accountant prepares the adjusted trial balance shown on page 988 at the end of the fiscal year, after all adjustments, including the adjustments for merchandise inventory, have been recorded and posted, hderchandise inventories at the beginning of the year were as follows; luggage department, $165,520;

accessory department, $81,440. The bases for apportioning expenses and the sources of the figures are as follows:

• Sales Salary Expense (payroll register): luggage department, $149,600; acces¬
sory department, $96,840

• Advertising Expense (newspaper column inches): luggage department, 1,200 inches; accessory department, 800 inches • Depreciation Expense, Store Equipment (plant and equipment ledger): luggage department, $19,232; accessory department, $7,640 • Store Supplies Expense (requisitions): luggage department, $836; accessory department, $648 • Miscellaneous Selling Expense (volume of gross sales): luggage department, $816; accessory department, $544 (verify these figures)
• Rent Expense and Utilities Expense (floor space): luggage department, 5,000 square feet; accessory department, 3,000 square feet • Insurance Expense (average cost of merchandise inventory, rounded): luggage department, $1,208; accessory department, $592 (verify these figures)
• Bad Debts Expense (volume of gross sales): luggage department, $2,160; acces¬
sory department, $1,440 (verify these figures)
• Miscellaneous General Expense (volume of gross sales): luggage department, $984; accessory department, $656 (verify these figures)
Instructions Prepare an income statement by department to show income from operations, as well as a nondepartmentalized income statement (using the Total columns) to show net income for the entire company.