Reference no: EM132724456
Problem - Thomas and Hill distributors has divided its business into two departments: commercial sales and industrial sales. The following information is provided for the year ended December 31, 20--:
Net sales, commercial sales department $630,000
Net sales, industrial sales department 470,000
Cost of goods sold, commercial sales department 378,000
Cost of goods sold, industrial sales department 188,000
Warehouse wages expense 99,400
Truck drivers' wages expense 88,200
Advertising expense 66,000
Warehouse lease expense 30,000
Depreciation expense-delivery equipment 11,000
Other operating expenses 115,000
Required -
1. Prepare an income statement showing departmental gross profit and total operating income.
2. Calculate departmental gross profit percentages.