TYPED
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, 2019 Acoustie Electric Sales $112,500 $105,500 Coat of goods sold 55,675 55.250 Gross profit 56,825 38,750 Operating expenses Advertising expense 8,075 6,250 Depreciation expense-Equipment 10,150 9,000 Salaries expense 17.300 13.500 Supplies expense 2.00 1.700 Rent expense 6,105 5,950 Utilities expende 2045 2.550 Total operating expenses 46.705 35930 Net income (loss) $ 10,120 $ (2003 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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, 2015 Acoustic Dept. Electric Dept Combined Direct expenses Total direct expenses Departmental contributions to overhead Indirect expenses Total Indirect expenses Exercise 09-7 Departmental contribution report LO P3 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. Electric $105,500 66,750 38,750 WHOLESALE GUITARS Departmental Income Statements Por Year Ended December 31, 2019 Acoustic Sales $112.500 Cost of goods sold 55.675 Grous profit 56,825 Operating expenses Advertising expense 8,075 Depreciation expense-Equipment 10,150 Salaries expense 17.300 Supplies expende 2,030 Rent expense 6,105 Utilities expense 3.045 Total operating expenses 46,205 Nat income (los) $ 10,120 6,250 9,000 13,500 1,700 5,950 2,550 38,950 (200) $ 1. Prepare a departmental contribution report that shows each department's contribution to overhead. 2. Based on contribution to overhead, should the electric guitar department be eliminated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on contribution to overhead, should the electric guitar department be eliminated? Based on contribution to overhead, should the electric guitar department be eliminated?
