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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
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 Shoes $ 441,000 Clothes $ 819,000 470,000 286,650 122,000 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 Base 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. 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 $7,400 of utilities expense Square Department Percent of Total Cost Allocated Footage Clothes 60% Shoes 40% Total 0 100% $ 0 Allocation of $27,000 of supervisor salaries expense Clothes Shoes Total Employees Percent of Total Cost Allocated 0 0% $ 0 Required 1 Required 2 >
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