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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 5 (LO 2/3) INCOME STATEMENT WITH DEPARTMENTAL OPERATING INCOME AND TOTAL OPERATING INCOME
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Bill Hickock owns a business called Wild West Wear. He has divided his business into two departments: boots and accessories. The information provided below is for the fiscal year ended June 30, 20--.
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 Net sales |
Boots $550,200 |
Accessories $257,000 |
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Cost of goods sold |
247,600 |
141,400 |
|
Wages expense |
107,000 |
50,800 |
|
Advertising expense |
43,200 |
15,700 |
|
Other operating expenses |
49,000 |
26,000 |
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Required:
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1.       Prepare an income statement showing departmental operating income and total operating income.
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2.       ![]()
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Calculate departmental operating expense and operating income percentages. 1.
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Boots |
Accessories |
Total |
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