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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. a For Year Ended December 31 Clothes Shoes Sales $

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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. a For Year Ended December 31 Clothes Shoes Sales $ 800,000 $ 450,000 Cost of goods sold 497,000 291,000 Direct expenses: Wages 125,000 88,000 Supplies used 20,000 10,000 Depreciation 28,000 17,000 The company reports the following indirect expenses for the year. Indirect Expense Amount Allocation Base Utilities $ 6,000 Square feet of space occupied Supervisor salaries 50,000 Number of employees in department Additional information about the two departments follows. Department Square Footage Number of employees Clothes 28,000 75 Shoes 12,000 50 Required: 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. Percent of Total Cost Allocated Allocation of $6,000 of utilities expense Department Square Footage Clothes Shoes Total Cost Allocated Allocation of $50,000 of supervisor salaries expense Employees Percent of Total Clothes Shoes Total Required 2 > Required 1 Required 2 Prepare departmental income statements. DIAZ COMPANY Departmental Income Statements For Year Ended December 31 Clothes Shoes Expenses Total expenses Income

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