Question

Departmental Income Statement
The following information was obtained from the ledger of Woodfield Candies, Inc., at the end of 2016

Woodfield Candies, Inc. Trial Balance December 31, 2016
				Debit	Credit
Cash				$45,000
Accounts receivable (net)				156,000
Inventory, December 31, 2016				180,000
Equipment and fixtures (net)				540,000
Accounts payable					$108,000
Common stock					450,000
Retained earnings					180,000
Revenue -department X					859,000
Revenue -department Y					368,000
Cost of goods sold - department X				420,000
Cost of goods sold - department Y				216,000
Sales salaries expense				198,000
Advertising expense				51,000
Insurance expense				24,000
Uncollectible accounts expense				9,000
Occupancy expense				36,000
Office and other administrative expense				90,000
				$1,965,000	$1,965,000

Woodfield analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained:

				Traceable Expense
				Dept. X	Dept. Y	Common Expense
Sales salaries expense				$150,000	$48,000
Advertising expense				21,000	9,000	$21,000
Insurance expense				15,000	9,000
Uncollectible accounts expense				6,000	3,000
Occupancy expense						36,000
Office and other administrative expense				15,000	12,000	63,000

Prepare a departmental income statement for Woodfield Candies, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 35%.

Do not use negative signs with your answers below.

Woodfield Candies, Inc. Departmental Income Statement For the Year Ended December 31, 2016
				Dept. X	Dept. Y	Total
Sales				Answer	Answer	Answer
Cost of goods sold				Answer	Answer	Answer
Gross profit				Answer	Answer	Answer
Operating expenses:
Sales salaries expense				Answer	Answer	Answer
Advertising expense				Answer	Answer	Answer
Insurance expense				Answer	Answer	Answer
Uncollectible accounts expense				Answer	Answer	Answer
Office and other administrative expense				Answer	Answer	Answer
Traceable operating expenses				Answer	Answer	Answer
Contribution to common expenses				Answer	Answer	Answer
Common expenses						Answer
Income before tax						Answer
Income tax expense						Answer
Net income						Answer

Answer 1