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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Clothes $ 812,800 Sales
Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Clothes $ 812,800 Sales Cost of goods sold Direct expenses: Wages Supplies used Depreciation Shoes $ 457,200 460,000 297,180 123,000 86,000 12,500 10,700 18,000 13,500 The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Amount $ 6,800 31,000 Allocation Base Square feet of space occupied Number of employees in department Additional information about the two departments follows. Department Square Footage Clothes Shoes Required: 28,200 18,800 Number of Employees 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 $6,800 of utilities expense Department Clothes Shoes Total Square Footage Percent of Total Cost Allocated Allocation of $31,000 of supervisor salaries expense Clothes Shoes Total Employees Percent of Total Cost Allocated < Required 1 Required 2 >
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