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Garcia Company has two operating departments (Phone and Earbuds) and one service department (Ofce). Its departmental income statements follow. Indirect expenses and service department expenses
Garcia Company has two operating departments (Phone and Earbuds) and one service department (Ofce). Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and ofce department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Earbuds Combined Sales $ 130,000 $ 55,000 $ 185,000 Cost of goods sold 63,700 34,100 97,800 Gross profit 66,300 20,900 87,200 Expenses Sales salaries 21,200 7,500 28,700 Supplies used 900 400 1,300 DepreciationEquipment 1,500 300 1,800 Rent 7.020 3.780 10,800 Utilities 2,600 1,400 4,000 Share of office department expenses 10,500 4,500 15,000 Total expenses 43,720 17,880 61,600 Income $ 22,530 $ 3.020 $ 25,600 Required: Prepare a departmental contribution to overhead report. 6 Answer is not complete. Sales Cost of goods sold Gross prot a 0 0 0
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