Example 14-9

Example 14-9 - 93,000 108,750 Warehouse expense 960,000...

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Exercise 14-9 Name: Section: Score: 100% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. X-OUT SPORTING GOODS CO. Divisional Income Statements For the Year Ended June 30, 2010 Sales $14,500,000 $17,600,000 Cost of goods sold 8,700,000 10,208,000 Gross profit $5,800,000 $7,392,000 Divisional sel ing expense 2,320,000 2,464,000 Divisional administrative expense 1,450,000 1,566,400 $3,770,000 $4,030,400 Income from operations before service department charges $2,030,000 $3,361,600 Less service department charges: Advertising expense $256,800 $385,200 Transportation expense 148,800 166,160 Accounts receivable col ection expense
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Unformatted text preview: 93,000 108,750 Warehouse expense 960,000 640,000 Total $1,458,600 $1,300,110 Income from operations $571,400 $2,061,490 Service Department Charges Total Advertising expense $256,800 $385,200 $642,000 Transportation rate per bil of lading $12.40 $12.40 Number of bil s of lading x 12,000 x 13,400 Transportation expense $148,800 $166,160 $314,960 Accounts receivable col ection rate $7.50 $7.50 Number of sales invoices x 12,400 x 14,500 Accounts receivable col ection expense $93,000 $108,750 $201,750 Warehouse rate per square foot $8.00 $8.00 Number of square feet x 120,000 x 80,000 Warehouse expense $960,000 $640,000 $1,600,000 Instructions Action Sports Division Team Sports Division Action Sports Division Team Sports Division...
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