Pretty in Pink 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 2017:

	Gowns			Shoes
Net sales Purchases Purchases returns Freight inwards Direct expenses Inventory, 1 July 2016 Inventory, 30 June 2017	$588 000 339 660 5 200 740 110 000 63 800 74 500			$152 000 84 800 1 370 530 31 625 26 650 23 970

Indirect expenses are $106 200 per year.

Required

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