Gross Profit Section of Departmental Income Statement

Bill Walters and Alice Jennings are partners in a business called Walters and Jennings Sportswear that sells athletic footwear. They have organized the business on a departmental basis as follows: running shoes, walking shoes, and specialty shoes. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows:

	Running Shoes	Walking Shoes	Specialty Shoes
Sales	$35,560	$40,820	$12,410
Cost of goods sold	22,150	24,410	7,500

Prepare the gross profit section of a departmental income statement for the year ended December 31, 20--. Show the gross profit for each department and for the business in total.

Walters and Jennings Sportswear Departmental Income Statement (Partial) For Year Ended December 31, 20--

	Running Shoes Dept.	Walking Shoes Dept.	Specialty Shoes Dept.	Total
Sales	$35,560	$40,820	$12,410
Cost of goods sold
Gross profit