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The Ski department reports sales of $610,000 and cost of goods sold of $427,000. Its expenses follow. Direct expenses: Salaries $ 117,000, Depreciation 45,600. Indirect
The Ski department reports sales of $610,000 and cost of goods sold of $427,000. Its expenses follow. Direct expenses: Salaries $ 117,000, Depreciation 45,600. Indirect expenses:Rent $ 14,400. Service department expenses: Office $ 26,400
1. For the Ski department only, prepare a departmental income statement.
2. & 3. For the Ski department only, prepare a departmental contribution to overhead report. Based on these two reports, should the Ski department be eliminated?
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