Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Clothes $ 832,000 475,000 Shoes $ 448,000 291, 200 Wages Supplies used Depreciation The company reports the following indirect expenses for the year. 115,000 14,000 15,000 86,000 10,800 12,500 Indirect Expense Amount Utilities $ 6,000 33,000 Supervisor salaries Additional information about the two departments follows. Allocation Base Square feet of space occupied Number of employees in department Department Square Footage Number of Employees Clothes 29,400 70 Shoes 12,600 30 Required: 1. Allocate indirect expenses to the two operating departments 2. Prepare departmental income statements.

Complete this question by entering your answers in the tabs below. Allocate indirect expenses to the two operating departments. Prepare departmental income statements. Diaz Company is a retail store with two operating departments, Clothes and Shoes, Information follows The company reports the following indirect expenses for the year. Additional information about the two departments follows. Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements