The Ski department reports sales of $605,000 and cost of goods sold of $425,000. Its expenses follow.
Question:
The Ski department reports sales of $605,000 and cost of goods sold of $425,000. Its expenses follow.
For the Ski department only, prepare a
(1) Departmental income statement and
(2) Departmental contribution to overhead report.
(3) Based on these two reports, should the Ski department be eliminated?
Transcribed Image Text:
Direct expenses Indirect expenses Service department expenses Salaries..... $112,000 Rent $14,000 Office ... $20,000 Depreciation... 42,000
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