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help me by filling out the chart, please and thank you. and please dont forget about the very bottom question, Exercise 24-7 Departmental contribution report
help me by filling out the chart, please and thank you. and please dont forget about the very bottom question,
Exercise 24-7 Departmental contribution report LO P3 Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has net loss. The company classifies advertising, rent, and utilities expenses as indirect. Electric $ 84,300 47,050 37,250 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $ 101,800 Cost of goods sold 45,575 Gross profit 56,225 Operating expenses Advertising expense 5,055 Depreciation expense equipment 10.100 Salaries expense 19,800 Supplies expense 2,030 Rent expense 7,095 Utilities expense 2,955 Total operating expenses 47,035 Net income (loss) 9,190 4,330 8,530 17,800 1,740 6,020 2,570 40,990 $ (3,740) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept. Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total indirect expenses 2. Based on contribution to overhead, should the electric guitar department be eliminated? O No O YesStep by Step Solution
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