Complete the following departmental income statements

Assignment Help Accounting Basics

Reference no: EM13568645

Lane Company operates a retail store with two departments, A and B. its departmental income statement for the current year follows:

Lane Company

Departmental income statement

For year ended Dec 31^st

	Dept. A	Dept. B	Combined
Sale	$180000	$200000	$380000
Direct expenses	129900	142870	272770
Contributions to OH	50100	57130	107230
Indirect expenses:
Depreciation-building	10000	11760	21760
Maintenance	1600	1700	3300
Utilities	6200	6320	12520
Office expenses	1800	2000	3800
Total indirect expenses	19600	21780	41380
Net income	30500	35350	65850

Lane Co. allocates building depreciation, maintenance, and utilities on the basis of sq. ft. office expenses are allocated on the basis of sales.

Management is considering an expansion to a three-department operation. The proposed department C would generate $120000 in additional sales and have a 17.5% contribution to OH. The company owns its building. Opening department C would redistribute the square footage to each department as follows: A, 19040; B, 21760 sq.ft; C, 13600. Increases in indirect expenses would include: maintenance, $500; utilities, 3800, and office expenses, 1200.

Complete the following departmental income statements, showing projected results of operations for the three sales departments. Round amount to the nearest whole dollar.

complete the chart below with above information:

	Dept. A	Dept. B	Dept. C	combined
Sales	$180000	$200000
Direct expenses	129900	142870
Contributions to OH	50100	57130
Indirect exp
Dep-building
Maintenance
Utilities
Office exp
Total indirect exp

Reference no: EM13568645

Questions Cloud

Before paying employee bonuses and state and federal taxes : before paying employee bonuses and state and federal taxes a company earns profits of 60000. the company pays employees

Hooper inc had the following production and cost : hooper inc. had the following production and cost information for its painting department during april materials are

The human resources department cost is allocated on the : the dollar store has a human resources department and a janitorial department that provide service to three sales

What is meant by a currency trading at a discount or at a : what is meant by a currency trading at a discount or at a premium in the forward

Complete the following departmental income statements : lane company operates a retail store with two departments a and b. its departmental income statement for the current

A cd bank trader is currently quoting a small figure : a cd bank trader is currently quoting a small figure bid-ask of 35-40 when the rest of the market is trading at

Sauders uses the step-down method of cost allocation and : sauders company has two service departments cafeteria and human resources and two production departments machining and

If your goal is to have 10000 in the account at the end of : 1. youre trying to decide how much to deposit into an account that earns 5 interested compounded anually.if your goal

The company allocates building maintenance cost on the : martinez inc. has tow separate departments human resources and building maintenance and two production departments. the

User Account

All Pages