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Please make answers as clear as possible thank you! Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric
Please make answers as clear as possible thank you!
Below are departmental income statements for a guitar manufacturer. The manufacturer is considering eliminating its electric guitar department since it has a net loss. The company classifies advertising, rent, and utilities expenses as indirect. WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Electric Sales $102,400 83,200 45,275 47 150 57,125 Cost of goods sold Gross profit 36,050 Operating expenses Advertising expense Depreciation expense-equipment Salaries expense 4,995 10,110 20,000 2,010 7,065 3,015 2,620 47,195 41,050 4,340 8,570 17,700 1,770 6,050 Supplies expense Rent expense Utilities expense Total operating expenses $ 9,930 $(5,000) Net income (loss) 1. Prepare a departmental contribution report that shows each department's contribution to overhead 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 expensesStep by Step Solution
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