Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For...

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Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used Depreciation The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Clothes Shoes $ 806,400 $ 453,600 430,000 294,840 123,000 18,500 15,500 87,000 10,500 12,000 Amount $ 6,600 30,000 Additional information about the two departments follows. Department Square Footage Number of Employees Clothes 31,500 77 Shoes 13,500 33 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements. Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information follows. For Year Ended December 31 Sales Cost of goods sold Direct expenses: Wages Supplies used Depreciation The company reports the following indirect expenses for the year. Indirect Expense Utilities Supervisor salaries Clothes Shoes $ 806,400 $ 453,600 430,000 294,840 123,000 18,500 15,500 87,000 10,500 12,000 Amount $ 6,600 30,000 Additional information about the two departments follows. Department Square Footage Number of Employees Clothes 31,500 77 Shoes 13,500 33 Allocation Base Square feet of space occupied Number of employees in department Required: 1. Allocate indirect expenses to the two operating departments. 2. Prepare departmental income statements.

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ANSWER ALLOCATION OF 6600 OF UTILITIES EXPENSE DEPARTMENT SQUARE FOOTAGE P... View the full answer