income statement with departmental gross profit and operating in 245511

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

Net sales, retail sales department ……………………….$570,000

Net sales, wholesale sales department ……………………830,000

Cost of goods sold, retail sales department ………………319,200

Cost of goods sold, wholesale sales department …………398,400

Warehouse wages expense ……………………………….110,000

Truck drivers’ wages expense ……………………………..90,500

Advertising expense ……………………………………….70,000

Warehouse lease expense ………………………………….40,000

Depreciation expense—delivery equipment ……………….12,000

Other operating expenses …………………………………130,000

REQUIRED

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

2. Calculate departmental gross profit percentages.

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