Question

Sales $ 610,000 Cost of goods sold 430,000 Salaries 111,000 ($25,200 is indirect) Utilities 17,000 ($6,000 is indirect) Depreciation 48,800 ($17,200 is indirect) Office expenses 26,200 (all indirect) 1. Prepare a departmental income statement for 2019. 2.

Answer 1

Sales $610,000

Less: Cost of Goods sold ($430,000)

Gross Profit $180,000

Less:

Salaries $111,000

Utilities $17,000

Depreciation $48,800

Office expenses $26,200 ($203,000)

Operating loss ($23,000)