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: Sales Cost of goods sold Prepare the gross profit section of a departmental income statement for the year ended December 31, 20-. Show the gross profit for each Running Shoes Walking Shoes Specialty Shoes $40,310 22,590 $37,640 $12,080 24,040 7,650 department and for the business in total Walters and Jennings Sportswear Departmental Income Statement (Partial) For Year Ended December 31, 20- Walking Shoes Dept. $40,310 Specialty Shoes Dept. $12,080 Total Running Shoes Dept. $37,640 Sales Cost of goods sold Gross profit Allocating Operating Expense-Square Feet Rebel Corp. rents 10,000 square feet of store space for $31,300 per year. The amount of square footage by department is as follows: Department A: Department B: Department C Department D: Allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied. 1,600 sq. ft. 2,200 sq. ft 3,800 sq. ft. 2,400 sq. f. Annual Rent Expense Department A Department B Department C Department D Total Allocating Operating Expense-Relative Net Sales Estelle Jackson owns a car stereo store. She has divided her store into three departments. Net sales for the month of July are as follows: Large: Medium: Smali Advertising expense for July was $23,000. Allocate the advertising expense among the three departments $36,000 30,000 54,000 on the basis of relative net sales. Advertising Expense Large Medium Small Total