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3 years ago

Divisional Income Statements

Business

1 answer:

jekas [21]3 years ago

5 0

Answer and Explanation:

The Preparation of divisional income statements is following below:-

Ruiz Industries Inc.

Divisional Income Statements

For the Year Ended November 30, 2018

Commercial Division Residential Division

Sales a $479,140 $292,280

Cost of goods sold b $316,230 $163,680

Gross profit c = (a - b) $162,910 $128,600

Administrative expenses d $57,500 $58,460

Operating income $105,410 $70,140

(e = c - d)

Support department

allocations f $43,120 $28,350

Segment Income $62,290 $41,790

(g = e - f)

So, to reach at segment income we subtract the Support department allocations from operating income.

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2 years ago

Dextra Computing sells merchandise for $10,000 cash on September 30 (cost of merchandise is $8,000). Dextra collects 9% sales ta

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Answer:

1. Dr Cash $10,900

Cr Sales $10,000

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Cr Merchandise Inventory $8,000

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Cr Cash $900

Explanation:

1. Preparation of the journal entry to record the cash sale and 9% sales tax

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Cr Sales $10,000

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Cr Merchandise Inventory $8,000

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2 years ago

When units are moved from one processing department to the next, the cost associated with those units must also be moved from o

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These costs called as Transferred costs.

<h3><u>Explanation:</u></h3>

The costs that are accumulated during the time of upstream production process in a firm refers to Transferred costs. These are associated with the goods that are transferred to the next department of a business from one department. With this product there will be a continuation of the production process.

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