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 $ 819,000 Shoes $ 441,000. 470,000 286,650 122,000 85,000 19,500. 10,200 15,500 13,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities. Supervisor salaries Amount $ 7,400 27,000 Allocation Basel Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Number of Employees Clothes Shoes Required: 25,800 17,200 66 44 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. www Prepare departmental income statements. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Sales Less: Cost of goods sold Gross profit Expenses Wages: Supplies used Depreciation Utilities Supervisor salaries Total expenses Income Clothes 819,000 470,000 349,000 Shoes $ 441,000 ( 286,650 154,350 0 0 $ 349,000 154,350 < Required 1 Required 2 RO