P25 02A YARD SHOP Selec d Information eter December 31, 2013 Plants Chemicals 5,400 S 2,600 17,500 2,400 47,000 400 Allocated indirect expenses g merchandise inventory Tools 5,000 ,600 $ Direct Exp Ending merchandise inventory Purchases Purchases returns and allowances Sales enses 30,000 2,500 50,000 500 126,750 1,750 15,500 2,000 36,000 300 50,400 400 75 500 Sales returns and allowances student Name Class Problem 25.02A YARD S Income Statoment Year Ended December 31, 2013 Plants Chemicals Tools Total Net Sales Cost of Goods Sold Net urchases Cost of Goods Available for Sale Cost of Goods Sold Gross Profit Contribution Margin Net Income (Loss) from Operations Net Sales Percent a Total Net Sales Times Total Allocation of Indirect Expenses direct Expenses Contribution Margin Indirect Expenses Net Income (Loss) from Operations Department B Tolals 20,000 60,000 Aven Data P25.01A Now2U Adius Selected Blance December 31, 2013 Department Department Merchandise Inventory, Jan. 1 Merchandise Inventory, Dec. 31 Total 45,000 $ 15,000 $ 11,000 288,750 41.000 52.000 Sales Returns and Allowances 531 825.000 Purchases 7,000 31 1000 115 000 200,000 Freight In Purchases Returns and Allowances Salaries Expense 500 500 500 50,000 5,00 1,500 2,000 10 150,000 20,000 Adve nse 15.000 Store Supplies E Cash Short or Over Insurance Expense Rent Expense Utilities Expense fice Salaries Expense Othe Uncollo Expense Depreciationccounts Expense Depreciation Expense - Office Equipment Interest Income Interest Expense nse 660 20 40 80 120 15,000 36,000 6,000 40,000 1,400 5,000 6,0 500 ense Furniture & Fixtures 300 500 Allocation Information 1. Insurance Expense: In proportion to the total of furniture and fixtures and the ending inventory in the departments. Department A Department B Totals 130,000 70,000 200,000 2. Rent Expense and Utilities Expense: On the basis of floor space occupied as follows: Department A Department B Totals 4,500 square feet 1,500 square feet 6,000 square feet 3. Office Salaries Expense, Other Office Expenses and Depreciation Expense-Office Equipment: on the basis of the gross sales in each department 4. Uncollectible Accounts Expense: on the basis of net sales in each department. 5. Depreciation Expense - Furniture and Fixtures: in proportion to cost of furniture and fixtures in each department. (Round to nearest dollar) Department A 30,000 ALLOCATION OF INDIRECT EXPENSES Proportion o Epense before depreciation and ending inventory Insurance Department Allocation Department A Departmentn Exponse Rent Expense Proportion of floor ied Department Allocation Rent Expense Department A Department D Utilities Expense Proportion of floor space occupied Utilities Department Allocation Expense Departmer DepartmentB Office Salaries Expense Office Proportion of total gross salos Salaries Expense Department Allocation Department A Department B Other Office Expenses Other Office Expenses Proportion of total gross sales Department Allocation Department A Department B Depreciation Expense - Office Equipment Depreciation Expense Off. Equip. Proportion of total Department Allocation gross sales Department A Department B Uncollectible Accounts Expense Uncollectible Proportion of total Accounts Department Allocation net sales Expense X Department A Department B Depreciation Expense-Furniture and Fixtures Depreciation Expense Furn. Proportion of cost of furniture and fixtures Department Al tio Department A Department B X X Student Name Class: Problem 25.01A New20 ement Year Ended December 31, 2013 Department B Department Total Operating Revenues Net Sales Cost of Goods Sold Delivered Cost of Purchases Net Delivered Cost of Purchases Total Merchandise Available for Sale Cost of Goods Sold Gross Profit on Sales Operating Expenses Direct Expenses Total Direct Expenses Contribution Margin Indirect Expenses Total Indirect Expenses Net Income from Operations Other Income Other Expense Net Income for the Year