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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
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 $ 845,000 470,000 Shoes $ 455,000 295,750 124,000 88,000 11,000 10,400 17,500 13,000 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 7,000 34,000 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 28,700 77 12,300 33 Shoes Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Required 1 Required 2 Allocate indirect expenses to the two operating departments. Allocation of $7,000 of utilities expense Department Square Footage Clothes Shoes Total 0 Percent of Total Cost Allocated Allocation of $34,000 of supervisor salaries expense Clothes Shoes Total Employees 0% $ 0 Percent of Total Cost Allocated 0 0% $ 0 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 Expenses Total expenses Income Clothes Shoes FA 0 0 0 0 0 $ 0
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