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Ive been having trouble with this question, organized work on chart would be very much appreciated! Below are departmental income statements for a guitar manufacturer.
Ive been having trouble with this question, organized work on chart would be very much appreciated!
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Acoustic Electric Sales $ 102,000 $ 83,600 Cost of goods sold 44,975 47.250 Gross profit 57,025 36,350 Expenses Advertising 5,015 4,280 Depreciation Equipment 10,060 8,550 Salaries 20, 200 17,100 Supplies used 1,970 1,760 Rent 7,015 5,980 Utilities 3.045 2,630 Total expenses 47,305 40,300 Income (loss) $ 9,720 $ (3,950) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution to overhead report. Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Combined Saved Rent Utilities Total expenses Income (loss) 7,015 3,045 47, 305 $ 9,720 5,980 2,630 40,300 $ (3,950) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a departmental contribution to overhead report. a Departmental Contribution to Overhead For Year Ended December 31 Acoustic Electric Combined Direct expenses Total direct expenses 0 0 0 $ 0 A 0 $ 0 Departmental contribution to overhead Rogurad Required 2 > Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as Indirect expenses. The manufacturer is considering eliminating Its Electric Guitar department because it shows a loss. Electric $ 33,600 47.250 36, 350 Departmental Income Statements For Year Ended December 31 Acoustic Sales 102,000 Cost of goods sold 44,975 Gross profit 57.025 Expenses Advertising 5,015 Depreciation Equipment 10,850 Salaries 20,200 Supplies used 1,970 Rent 7,015 Utilities 3,045 Total expenses 47,305 Incone (loss) $ 9,720 4,280 8.550 17,100 1.760 5,980 2,630 40, 100 $()950) 1. Prepare a departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated? Step by Step Solution
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