income statement with departmental gross profit and 245510

INCOME STATEMENT WITH DEPARTMENTAL GROSS PROFIT AND OPERATING INCOME Thomas and Hill Distributors has divided its business into two departments: commercial sales and industrial sales. The following information is provided for the year ended December 31, 20–:

Net sales, commercial sales department………………………..$630,000

Net sales, industrial sales department……………………………470,000

Cost of goods sold, commercial sales department……………….378,000

Cost of goods sold, industrial sales department…………………188,000

Warehouse wages expense ………………………………………..99,400

Truck drivers’ wages expense……………………………………..88,200

Advertising expense……………………………………………….66,000

Warehouse lease expense………………………………………….30,000

Depreciation expense—delivery equipment………………………11,000

Other operating expenses…………………………………………115,000

REQUIRED

1. Prepare an income statement showing departmental gross profit and total operating income.

2. Calculate departmental gross profit percentages.

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