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Please help me solve this with step by step explanation, thankyou Garcia Company has two operating departments {Phone and Earbuds) and one service department {Office}.
Please help me solve this with step by step explanation, thankyou
Garcia Company has two operating departments {Phone and Earbuds) and one service department {Office}. Its departmental income statements follow. Indirect expenses and service department expenses consist of rent, utilities, and office department expenses. GARCIA COMPANY Departmental Income Statements For Year Ended December 31 Phone Earbuds Combined Sales :3 179,999 $ 125,999 5 295,999 Cost of goods sold 83,366 77,566 166,866 Gross profit 86,766 47,566 134,266 Expenses Sales salaries 22,566 8,466 36,966 Supplies used 556 556 1,166 DepreciationEquipment 2,466 366 2,766 Rent 7,939 3,849 19,979 Utilities 2,499 1,999 4,399 Share of office department expenses 12,666 5,566 17,566 Total expenses 46,888 23,498 67,379 Income $ 39,929 $ 27,919 $ 55,939 Required: Prepare a departmental contribution to overhead report. Totaldnectexpenses 6 6 O Departmental contribution to overhead $ 0 5 Cl 35 0Step by Step Solution
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