Question: Please help me solve the ones that are incorrect!! Check my work mode : This shows what is correct or Incorrect for the work you


Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate com 6 Part of po Required information Problem 23-6A Analyzing possible elimination of a department LO P4 [The following information applies to the questions displayed below) Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's departmental income statements show the following. AND DECOR COMPANY Departmental Income tatements For Your Unded December 31, 2019 Dept. 100 Dept. 200 Combined Balas $441,000 9206.000 6727,000 cost of goods sold 262,000 210.000 472.000 dos proti 179,000 76,000 255,000 Operating expenses Diret expenses Advertising 17.000 13.500 30,500 tore wupplies used 5,000 5.600 11,600 Depreciation Store aquiment 4,600 1.000 1.5.00 Total direct expenses 27,600 22.100 19,700 Allocated expenses Sales salaria 78.000 46.800 sont axpono 124,900 9.420 4.720 14,140 Bad debts expense 4.400 7.300 16.700 ottice salary 13,720 12,400 21,200 Insurance expense 1.500 700 Macellaneous office expenses 2,200 2,200 1500 3.000 Total allocated expenses 11030 72,500 1920 Total en 146, 960 95.600 202.340 Net Income loos) $ 32.060 $(19.600) 12.460 In analyzing whether to eliminate Department 200, management considers the following: Check my work mode: This shows what is correct or Incorrect for the work you have completed so far. It does not indicate comp 6 Total expenses Nut Income (10) 146,940 $32,060 95,600 $(19,600) 242, 540 $ 12,460 Part 13 In analyzing whether to eliminate Department 200, management considers the following: 7 point a. The company has one office worker who earns $600 per week, or $31,200 per year, and four salesclerks who each b. The full salaries of two salesclerks are charged to Department 100. The full salary of one salesclerk is charged to Department 200. The salary of the fourth clerk, who works half-time in both departments, is divided evenly between c. Eliminating Department 200 would avoid the sales salaries and the office salary currently allocated to it. However, management prefers another plan. Two salesclerks have indicated that they will be quitting soon. Management believes that their work can be done by the other two clerks if the one office worker works in sales half-time. Ellminating Department 200 will allow this shift of duties. If this change is implemented, half the office worker's salary would be reported as sales salaries and half would be reported as office salary. d. The store building is rented under a long-term lease that cannot be changed. Therefore, Department 100 will use the space and equipment currently used by Department 200, e. Closing Department 200 will eliminate its expenses for advertising, bad debts, and store supplies: 70% of the insurance expense alocated to it to cover its merchandise Inventory, and 24% of the miscelaneous office expenses presently allocated to it Problem 23-6A Part 1 Required: 1. Complete the following report showing total expenses, expenses that would be eliminated by closing Department 200 and the expenses that would continue. The statement should reflect the reassignment of the office worker to one hoin Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate 6 Problem 23-6A Part 1 Part 1 of 3 Required: 1. Complete the following report showing total expenses, expenses that would be eliminated by closing Department 200 and the expenses that would continue. The statement should reflect the reassignment of the office worker to one-half time as salesclerk. 7 points Answer is complete but not entirely correct. ELEGANT DECOR COMPANY Analysis of Expenses under Elimination of Department 200 Total Eliminated Continuing Expenses Expenses Expenses Cost of goods sold $ 472,000 $ 210,000 $262.000 Direct esperes Advertising 30.500 13,500 17,000 Store supplies used 11.500 5.600 6,000 Depreciation Store equipment 7.500 0 7,600 All expenses Sales salaries 124 300 43.680 01.120 Rentgen 14,140 0 14.140 Badspense 10.700 7.300 9,400 Ocean 31,200 18.7200 12.480 2.200 700 1.500 Music expenses 3.000 1.500 2.300 $714.540 301,000 $ 413.510 lololo lolololo 3
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