Read through page 1, the complete the allocations on page 2. When you've done that, please complete the pro-forma Income Statement on page 1.Page1

Page 1:

Page 2:

Bebidas Don Erico produces fine tequilas made with exceptional organic ingredients. Two distinct varieties are produced: High-0 Silver Tequila and Solid gold Tequila. Please use the information on this and the next page to complete the departmental income statement below. Departments SG&A High-0 Silver Solid Gold Total Sales COGS Gross Margin 2,328,400 1,218,100 1,110,300 3,492,600 1,755,300 1,737,300 5,821,000 2,973,400 2,847,600 279,500 Payroll Depreciation Supplies Total Direct Expense 141,200 24,800 9,100 175,100 35,200 15,090 252,100 45,420 20,000 317,520 672,800 105,420 44,190 822,410 329,790 Rent Utilities Advertising Total Allocated Expense Total Expense Allocated SG&A Expense Total Expense III Operating Income $54,000 of Rent should be allocated based on square footage (next page) $190,000 of Utilities should be allocated based on square footage as well $176,000 of advertising should be allocated to departments in proportion to sales Total SG&A expense should be allocated to the two other departments in proportion to sales Rent square feet percentage rent expense allocated amount Administration High-0 Silver Solid Gold 5,400 9,450 12,150 54,000 54,000 54,000 27,000 100.0% Utilities square feet percentage utilities expense allocated amount 5,400 190,000 Administration High- Silver Solid Gold 9,450 190,000 190,000 12,150 27,000 100.0% sales percent of sales Administration High-0 Silver Solid Gold 2,328,400 3,492,600 5,821,000 100.0% percent of sales allocated amount Advertising Administration High-0 Silver Solid Gold advert expense 176,000 176,000 176,000 100.0% SG&A percent of sales G&A expense allocated amount Administration High-0 Silver Solid Gold 100.0%