Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $620,000 and cost of goods sold of $415,000. Its expenses follow.

Direct expenses		Indirect expenses		Service department expenses
Salaries	$ 111,000	Rent	$ 15,600	Office	$ 27,800
Depreciation	54,800

1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated?

Exercise 22-8 (Algo) Departmental income statement and contribution to overhead LO P3 The Ski department reports sales of $620,000 and cost of goods sold of $415,000. Its expenses follow. Direct expenses Indirect expenses Service department expenses Salaries $ 111,000 $ 15,600 Office $ 27,800 Depreciation 54,800 Rent 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 For the Ski department only, prepare a departmental income statement. Departmental Income Statement For Year Ended December 31 Ski Department Expenses Total expenses Req 1 Reg 2 and 3 For the Ski department only, prepare a departmental contribution to overhead report. Based on the Ski department be eliminated? Departmental Contribution to Overhead For Year Ended December 31 Ski Department Total direct expenses Departmental contribution to overhead Should the Ski department be eliminated?