Blissful Ltd specialises in bridal wear. The store operates two departments — gowns and shoes. The following information was obtained from the store’s accounting records for the year ended 30 June 2025.

Required

(a) Prepare a departmental statement of financial performance showing the departmental gross profit for each department and the store’s profit for the year.

(b) Calculate the gross profit percentage for each department.

(c) Prepare a departmental statement of financial performance that shows the profit of each department after the indirect expenses are allocated on the basis of sales (round to two decimal places).

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Indirect expenses are $106 200 per year. Net sales Purchases Purchases returns Freight inwards Direct expenses Inventory, 1 July 2022 Inventory, 30 June 2023 Gowns Shoes $588 000 $152 000 339 660 84 800 6 200 2370 530 740 110 000 31 625 63 800 26 650 74 500 23 970