Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There is nothing missing there are 3 pics in order showing the whole problem ( I double checked it) Please let me know what else

image text in transcribed

There is nothing missing there are 3 pics in order showing the whole problem ( I double checked it) Please let me know what else the issue is. Thank you.

image text in transcribedimage text in transcribedimage text in transcribed
Exam #3 0 9-13 0 Sturd 8 Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses of low profits for several years. The company's 201/ departmental income statement throws the following ELEGANT DECOR COMPANY Departmental Income Statements For Year Ended December 31, 2817 Dept. 100 Dept. .200 Combined Sales $446,190 $202,900 1728, 009 Cost of goods sold 208,090 Grope profit 178,014 74,804 252, 909 Operating expenses Direct expenses Advertising 15,560 11.140 25,508 Store supplies used 4.008 5,500 11, 580 Depreciation Store equipment 3. 120 8, 100 Total direct expenses 24.900 19. 010 45,108 Allocated experien Sales salaries 78,900 46, B40 124,100 Rent expense 9,430 4,740 14,170 and debts expense 9,800 7.930 17,700 Office salary 15,600 26,900 Insurance expense 1, 504 Miscellaneous office expenses 2, 320 1, 709 Total allocated expenses 117,439 190,470 Total expenses 141, 790 236,570 Net income (loss) $ 34,274 $(18,840) $ 15,490 In analyzing whether to eliminate Department 200, management comriders the following Host > P Type here to search e G 1080 acer 5 5 P8 in analyzing whether to chile Department 700, management comidens the following a. The company has one office worker who earn $500 per wick or $36:000 per you and low she does wo each rain $600 per week or 1 11.300 per year for each wekdark h, The All solves of two sabredarks are charged to Department 100. The full salary of one ulrickerk hithinged to Depart on! 300. The salary of the fourth clark, who works hall ing in both departments, Is divided curly between the two departments. c. Flimiting Department 200 would weold the sales salaries and the office watery curically allocated to it Howerver management pieters another plan. Two wekdo have indicated that they wil be quitting soon. Management believes that thee work can be done by the other two clerks if the one office worker works injuly fall tine. Eliminating Department 200 will allow this shit of duties If fils change h implemented ball the office worker's salary would be reported as sales salaries and hall would be imported as offpe polar i. The wore building h rented under a long term leave that cannot be charged Therefore, Dspinners 100 willuse the spike and equipment currently used by Usprinent at i. Closing Department 200 will eliminate experts for advertising bad debt, and whoe supplant M51ofthe insurance expense abocited to It to cover hi merchandise inventory and take of the mhorricoun slice capenes piriently allocated to L Required: 1 Complete the following report showing tow expenses cophines that would be eliminated by closing Department 200 and the topete's that would continue, The statement should reflect the reassignment of the office worker to moe hall time as ulrichk ELEGANT DOOOR COMPANY EXPHIMIN Type her to search D e 80 E 6 9 5 O+ allocated to t. 8 Required 1. Complete the following report showing total expenses expenses that would be clubnoted by closing Department 30 and Be popenotes that would continue. The statement should reflect the reassignment of the office worker to the hal time as siceleb ELEGANT OF COR COMPANY Analysis of Expanses under Comingon of Department 300 Continuing Tobil ApparHa 0 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Accounting For Governmental And Not-for-Profit Organizations

Authors: Paul Copley

14th Edition

1260570177, 978-1260570175

More Books

Students also viewed these Accounting questions

Question

Did I allow myself adequate time to generate options?

Answered: 1 week ago

Question

Always show respect for the other person or persons.

Answered: 1 week ago

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago

Question

1. Too reflect on self-management

Answered: 1 week ago