Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income
Question:
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Office). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses.
Required
Prepare a departmental contribution to overhead report (see Exhibit 24.12).
Exhibit 24.12
Transcribed Image Text:
Departmental Income Statements For Year Ended December 31 Phone Earbuds Combined Sales . $130,000 $55,000 $185,000 Cost of goods sold . Gross profit .. 63,700 34,100 97,800 66,300 20,900 87,200 Expenses Sales salaries ... 21,200 7,500 28,700 Supplies used... 900 400 1,300 Depreciation-Equipment . 1,500 300 1,800 Rent 7,020 3,780 10,800 Utilities 2,600 1,400 4,000 Share of office department expenses..... 10,500 4,500 15,000 Total expenses . 43,720 17,880 61,600 Income.... $ 22,580 $ 3,020 $ 25,600
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