Daisy Discount Store operates two departments — stationery and kitchenware. During the year ended 30 June 2020, the store had the following financial results.

In addition, indirect expenses that were not allocated to the departments amounted to $23 894.
Required

(a) Prepare departmental income statements for the year ended 30 June 2020, based on the departmental gross profit and the departmental contribution approaches. (Use three columns headed stationery department, kitchenware department, and total store.)

Transcribed Image Text:

Sales Direct expenses Gross profit percentage of sales Stationery $247 560 55000 20% Kitchenware $289 200 136 120 45%