first 3 pics are question related, i need % on all products for all the 3 departments.
Problem #1 Departmental Income Statement It's A Wonderful Retail Life is a chic clothing store for women. The company has three profit centers: Shoes, Handbags, and Clothing. The company has three service centers: Human Resources, Accounting, and Customer Service. The company also has two investment centers: Treasury Department and Fixed Assets Department. Sheila Davis is the Accounting Director, and she prepared the below departmental income statement. All of the service departments and investment center costs were allocated to the three profit centers. Revenues Operating Expenses Shoes 6,150,000 1,537,500 Handbags 4,950,000 1,237,500 Clothing 15,750,000 3,937,500 Income from operations before service departments & investment centers charges 4612,500 3,712,500 11,812,500 Service Department Charges Human Resources Accounting Customer Service Subtotal 10500ml 1,050,000 1,450,000 2,260,000 4,760,000 1,050,000 1,450,000 2,260,000 4,760,000 1,050,000 1,450,000 2,260,000 4,760,000 Investment Center Charges Treasury Department Fixed Assets Department Subtotal 950,000 1,200,000 2 150,000 950.000 1.200,000 2.150,000 950,000 1,200,000 2,150,000 Income from Operations (2,297,500) (3,197,500) 4,902,500 Based on the above Departmental Income Statement, the accounting director is considering recommending the elimination of both the Shoes and Handbags Departments. She has contacted you for advice. Additional Information Available: Number of employees Number of customers Invested Assets Number of Invoices processed Shoes 2 5 2,800 $ 2,500,000 10,500 Handbags Clothing 20 55 2,100 9,100 $ 1,500,000 $6,500,000 5,250 19,250 Directions: 1) Use the above information to allocate the appropriate departmental expenses to the Profit Centers 2) Prepare a corrected Departmental Income Statement. 1,050,000 = 3,150,000. Next you calculate the revised service charges for each product in the HR department using the percentages of each product and the 3,150,000. You'll get 7 hundred thousand something for shoes, 6 hundred thousand something for handbags and you can figure out clothing. You'll do the same for accounting department using number of invoice to get your percentage for each product. The same for customer service department you'll use number of customers to get your reference Divisional Income Statements DataLink Inc. Divisional Income Statements For the Year Ended December 31, 2048 Northern Division $560,000 336,000 Central Division $672,000 470,400 Southern Division $750,000 562.500 Revenues Operating expenses.... Income from operations before service department charges... Service department charges Income from operations... $224,000 154,000 $ 70,000 $201,600 117,600 $ 84,000 $187,500 112.500 $ 75,000
