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.