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Need help answering these questions work has been done Read through page 1, the complete the allocations on page 2. e complete the pro-forma Income
Need help answering these questions work has been done
Read through page 1, the complete the allocations on page 2. e complete the pro-forma Income Statement on page 1. On page 2 When you've done that, please complete the pro-forma Income Statement on page 1. With page1 completed, you can answer the following questions. Do not use dollar signs or decimal places (hint: no need for rounding). Make sure to properly use commas. Bebidas Don Erico produces fine tequilas made with exceptional organic ingredients. Two distinct varieties are produced: High- Silver Tequila and Solid gold Tequila. Please use the information on this and the next page to complete the departmental income statement below. Departments SG&A High- Silver Solid Gold Total Sales COGS Gross Margin 2,328,400 1,218,100 1,110,300 3,492,600 1,755,300 1,737,300 5,821,000 2,973,400 2,847,600 141,200 Payroll Depreciation Supplies Total Direct Expense 24,800 279,500 35,200 15,090 329,790 252,100 45,420 20,000 672,800 105,420 44,190 9,100 175,100 317,520 822,410 Rent Utilities 10,800 18,900 24,300 $4,000 38,000 66,500 85, Soo 190,000 70,400 105, Goo 176,000 48,90 155,800 215.400 420,000 Advertising Total Allocated Expense Total Expense Allocated SG&A Expense 895 60 134,340 SOS,ISO 667 260 1,242, 410 Total Expense perating Income S35, Iso 1,07,040 1,605, 190 $4,000 of Rent should be allocated based on square footage (next page) $190,000 of Utilities should be allocated based on square footage as well $176,000 of advertising should be allocated to departments in proportion to sales Total SG&A expense should be allocated to the two other departments in proportion to sales Rent square feet Administration percentage 20 5,400 High-O Silver 9,450 35 rent expense allocated amount 54,000 10,800 54,000 18,000 54,000 24.300 54,00o Solid Gold 12,150 45 27,000 100.0% square feet Utilities Administration percentage utilities expense allocated amount 5,400 High- Silver 9,450 25 190,000 37,000 190,000 66, Sod 190,000 85, Soo 190,00 d Solid Gold 12,150 27,000 100.0% sales percent of sales Administration 2,328,400 High- Silver Solid Gold 3,492,600 5,821,000 100.0% percent of sales advert expense allocated amount Advertising Administration High- Silver Solid Gold 176,000 176,000 105.6on 176,000 1760 100.0% percent of sales G&A expense allocated amount SGEA Administration High-0 Silver Solid Gold 223,00 84,560 223,900 134,340 100.0% How much rent is allocated to SG&A? How much Utilities Expense is allocated to High-O Silver? How much Advertising Expense is allocated to Solid Gold? What is the Total Allocated Expense for SG&A? What is the Total Expense for the company? How much SG&A expense is allocated to High-O Silver? How much SG&A expense is allocated to Solid Gold? What is the expected operating income for Bebidas Don Erico
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