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: Wages Supplies used Depreciation Clothes $ 800,000 Shoes $450,000 497,000 291,000 125,000 88,000 20,000 10,000 28,000 17,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 6,000 50,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Square Footage Number of Employees Department Clothes Shoes Required: 28,000 12,000 75 50 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate indirect expenses to the two operating departments. Allocation of $6,000 of utilities expense Square Department Footage Percent of Total Cost Allocated Clothes 30,100 70% 5,600 Shoes 12,900 30% 2,400 Total 43,000 100%S 8,000 Allocation of $50,000 of supervisor salaries expense Percent of Employees Total Cost Allocated Clothes Shoes Total 84 70% 19,600 36 30% 8,400 120 100% S 28,000 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare departmental income statements. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Sales Add: Cost of goods sold Gross profit Expenses Clothes Shoes $ 832,000 $ 448,000 400,000 291,200 432,000 156,800 Wages 123,000 85,000 Supplies used 11,000 10,200 Depreciation 20,000 13,500 ( Utilities 5,600 2,400 Supervisor salaries 19,600 8,400 179,200 119,500 Total expenses 358,400 239,000 Income 73,600 $ (82,200)