Departmental Income Statement The following information was obtained from the ledger of Woodfield Candies, Inc.: Woodfield Candies, Inc. Trial Balance December 31 Debit Credit Cash $42,000 Accounts receivable (net) 156,000 Inventory, December 31 180,000 Equipment and fixtures (net) 540,000 Accounts payable $108,000 Common stock 450,000 Retained earnings 180,000 Revenue-department X 840,000 Revenue -department Y 360,000 Cost of goods sold - department X 420,000 Cost of goods sold - department Y 216,000 Sales salaries expense 192,000 Advertising expense 42,000 Insurance expense Uncollectible accounts expense Occupancy expense Office and other administrative expense 24,000 9,000 36,000 81,000 $1,938,000 $1,938,000 Woodfield analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained: Traceable Expense Sales salaries expense Advertising expense Insurance expense Uncollectible accounts expense Occupancy expense Common Dept. X Dept. Y Expense $147,000 $45,000 18,000 6,000 $18,000 15,000 9,000 6,000 3,000 36,000 Office and other administrative expense 12,000 9,000 60,000 Prepare a departmental income statement for Woodfield Candies, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 35%. Do not use negative signs with your answers below. Woodfield Candies, Inc. Departmental Income Statement Sales Cost of goods sold For the Year Ended December 31 Dept. X $ 840,000 $ Dept. Y 360,000 Total $1,200,000 420,000 420,000 216,000 144,000 636,000 564,000 Gross profit Operating expenses: Sales salaries expense Advertising expense Insurance expense Uncollectible accounts expense 147,000 18,000 15,000 6,000 Office and other administrative expense 12,000 Traceable operating expenses 198,000 45,000 6,000 9,000 3,000 9,000 72,000 192,000 24,000 24,000 9,000 21,000 Contribution to common expenses 222,000 72,000 270,000 294,000 Common expenses 114,000 Income before tax Income tax expense Net income 408,000 x 408,000 x $ 200,000 x Check