Park Company requested that you

(1) Assign indirect expenses to its jewelry and shoes departments as appropriate

(2) Prepare an income statement for September 201X showing departmental contribution margins along with net income. Assume a 25% tax rate.

Salaries are based on net sales. All other indirect expenses are based on square footage.

Transcribed Image Text:

Jewelry (30,000 square feet) Shoes (10,000 square feet) Indirect Cost Net Sales $278,000 $222,000 Cost of Goods Sold 119,500 20,196 Salaries Expense 3,300 2,000 $ 9,000 Depreciation Expense 24,800 21,200 Advertising Expense 940 2,200 19,500 Administrative Expense 33,500 Rent Expense 11,800