Showing posts with label Commercial Division. Show all posts
Showing posts with label Commercial Division. Show all posts

Friday, October 26, 2018

Using the data for Lee Company from Practice Exercise 24-2B along with the data provided below,

Using the data for Lee Company from Practice Exercise 24-2B along with the data provided below, determine the divisional income from operations for the Retail Division and the Commercial Division.

                               Retail Division | Commercial Division
Sales.                               $945,000 | $966,000
Cost of goods sold            504,000 | 559,300
Selling expenses               156,800 | 175,000

Answer:

Retail Commercial 
Division Division 
Sales……………………………………………………… $945,000 $966,000 
Cost of goods sold……………………………………    504,000   559,300 
Gross profit…………………………………………… $441,000 $406,700 
Selling expenses………………………………………   156,800   175,000 
Income from operations before service 
department charges………………………………… $284,200 $231,700 
Service department charges…………………………    118,800   145,200 
Income from operations……………………………… $165,400 $  86,500