PROBLEM 24A-2
PHILLIPS COMPANY
Copyright © 2016 Pearson Education, Inc.
24–11
PROBLEM 24A-4
(1)
GLOVER COMPANY
DEPARTMENTAL EXPENSES
JEWELRY
SHOES
DIRECT
INDIRECT
DIRECT
INDIRECT
TOTALS
A.
Salaries Expense
$2,900
$5,348
$1,800
$4,252
$14,300
B.
Depreciation Expense
24,200
20,500
44,700
C.
Advertising Expense
950
14,329
1,950
6,671
23,900
D.
Administrative Expense
22,176
10,324
32,500
E.
Rent Expense
7,984
3,716
11,700
$28,050
$49,837
$24,250
$24,963
$127,100
Copyright © 2016 Pearson Education, Inc.
24–12
PROBLEM 24A-4 (CONCLUDED)
(2)
GLOVER COMPANY
INCOME STATEMENT SHOWING DEPARTMENTAL CONTRIBUTIONS
TO INDIRECT EXPENSE
FOR MONTH ENDED JUNE 30, 201X
JEWELRY
SHOES
TOTALS
Net Sales
$283
0
0
0
00
$225
0
0
0
00
$508
0
0
0
00
Cost of Goods Sold
204
5
0
0
00
117
5
0
0
00
322
0
0
0
00
Gross Profit on Sales
$78
5
0
0
00
$107
5
0
0
00
$186
0
0
0
00
Direct Departmental Expenses
Salaries Expense
2
9
0
0
00
1
8
0
0
00
4
7
0
0
00
Depreciation Expense
24
2
0
0
00
20
5
0
0
00
44
7
0
0
00
Advertising Expense
9
5
0
00
1
9
5
0
00
2
9
0
0
00
Total Direct Departmental Expenses
28
0
5
0
00
24
2
5
0
00
52
3
0
0
00
Contribution Margin
$50
4
5
0
00
$83
2
5
0
00
133
7
0
0
00
Indirect Departmental Expenses
Salaries Expense
$9
6
0
0
00
Advertising Expense
21
0
0
0
00
Administrative Expense
32
5
0
0
00
Rent Expense
11
7
0
0
00
Total Indirect Expenses
74
8
0
0
00
Income before Taxes
58
9
0
0
00
Income Tax Expense
17
6
7
0
00
Net Income
$41
2
3
0
00
SOLUTIONS TO SET B PROBLEMS
PROBLEM 24B-1
SPEEDY STOP
INCOME STATEMENT SHOWING DEPARTMENTAL GROSS PROFIT
FOR YEAR ENDED DECEMBER 31, 201X
Grocery
Revenue from Sales:
Sales
$23
0
0
0
00
Less: Sales Returns
and Allowances
2
0
0
0
00
Net Sales
$21
0
0
0
00
Cost of Goods Sold:
Merchandise Inventory
January 1, 201X
6
8
0
0
00
Purchases
$21
6
0
0
00
Less: Purchases Returns
and Allowances
8
0
0
00
20
8
0
0
00
Cost of Goods Available
for Sale
$27
6
0
0
00
Less: Merchandise Inventory
December 31, 201X
18
5
0
0
00
Cost of Goods Sold
9
1
0
0
00
Gross Profit on Sales
$11
9
0
0
00
Operating Expenses
Income Before Taxes
Income Tax Expense
Net Income
PROBLEM 24B-1 (CONCLUDED)
SPEEDY STOP
INCOME STATEMENT SHOWING DEPARTMENTAL GROSS PROFIT
FOR YEAR ENDED DECEMBER 31, 201X
Pizza
Totals
$22
0
0
0
00
$45
0
0
0
00
3
5
0
0
00
5
5
0
0
00
$18
5
0
0
00
$39
5
0
0
00
5
2
0
0
00
12
0
0
0
00
$16
0
0
0
00
$37
6
0
0
00
4
0
0
00
15
6
0
0
00
1
2
0
0
00
36
4
0
0
00
$20
8
0
0
00
$48
4
0
0
00
8
4
0
0
00
26
9
0
0
00
12
4
0
0
00
$21
5
0
0
00
$6
1
0
0
00
$18
0
0
0
00
4
8
0
0
00
13
2
0
0
00
2
9
0
4
00
$10
2
9
6
00
PROBLEM 24B-2
EUSTIS COMPANY
PROBLEM 24B-3
JAY’S CORPORATION
INCOME STATEMENT SHOWING DEPARTMENTAL INCOME BEFORE TAX
FOR YEAR ENDED DECEMBER 31, 201X
TVS
WASHERS
TOTALS
Net Sales
$105
0
0
0
00
$21
0
0
0
00
$126
0
0
0
00
Cost of Goods Sold
36
0
0
0
00
14
0
0
0
00
50
0
0
0
00
Gross Profit on Sales
$69
0
0
0
00
$7
0
0
0
00
$76
0
0
0
00
Operating Expenses
Sales Salary Expense
3
2
5
0
00
6
5
0
00
3
9
0
0
00
Building Expense
3
7
5
0
00
1
2
5
0
00
5
0
0
0
00
Delivery Expense
2
2
5
0
00
4
5
0
00
2
7
0
0
00
Depreciation Expense
3
0
0
00
1
0
0
00
4
0
0
00
Total Operating Expenses
9
5
5
0
00
2
4
5
0
00
12
0
0
0
00
Income before Taxes
$59
4
5
0
00
$4
5
5
0
00
64
0
0
0
00
Income Tax Expense
21
7
6
0
00
Net Income
$42
2
4
0
00
PROBLEM 24B-4
(1)
GREER COMPANY
DEPARTMENTAL EXPENSES
JEWELRY
SHOES
INDIRECT
DIRECT
INDIRECT
TOTALS
A.
Salaries Expense
$5,285
$2,150
$4,115
$14,850
B.
Depreciation Expense
21,100
45,500
C.
Advertising Expense
16,359
1,800
5,641
24,950
D.
Administrative Expense
24,167
8,333
32,500
E.
Rent Expense
9,072
3,128
12,200
$54,883
$25,050
$21,217
$130,000
PROBLEM 24B-4 (CONCLUDED)
(2)
GREER COMPANY
INCOME STATEMENT SHOWING DEPARTMENTAL CONTRIBUTIONS
TO INDIRECT EXPENSE
FOR MONTH ENDED AUGUST 31, 201X