Exam 24: Departmental Accounting

Joyful Praises Corporation has total advertising expenses of $84,000: $32,000 for radio advertising and $52,000 for print advertising.The print advertising is allocated to Departments A and B based on net sales generated in each department.Department A has net sales of $446,400 and Department B has net sales of $297,600.How much of the print advertising should be allocated to Department A?

The photography department in a department store experienced the following revenue and expenses during October: Sales \ 13,000 Cost of Goods Sold 4,900 Direct Operating Expenses 1,000 Indirect Operating Expenses 2,000 The photography departmental gross profit is:

Which of the following is NOT a direct departmental expense in a sales department?

Which of the following statements is true in regards to a profit center?

The availability of suppliers and a firm's potential capacity is a consideration before a department is added.

If the property,plant,and equipment cannot be traced to a specific department,depreciation expense is a(n):

A company has four departments (A,B,C and D)and the net sales are $30,000;$40,000;$60,000 and $25,000 respectively.The cost of goods sold per department is $25,000;$15,000;$40,000 and $15,000 respectively.What department has the lowest gross profit?

When preparing an income statement showing departmental contribution margin:

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The payroll department of a manufacturer.________

You have been hired by Jones to allocate his utilities to each department based on space (in square footage). Complete the assignment.

Indirect expenses are normally:

Advertising expense totaled $20,000.If indirect advertising costs are allocated based on gross sales per department,what amount would be allocated to the Watches department if $5,000 of advertising is indirect? Gross Sales: Jewelry,$80,000;Glassware,$30,000;Watches,$40,000.

Direct expenses,such as salaries,can be traced to a particular department.

Rent paid for the freezers in the frozen foods department of a food store.________

A profit center and a cost center both generate revenue.

A department income statement showing gross profit by department is a useful tool in analyzing performance of individual departments.

A unit or department that incurs costs but does not generate revenues is known as a:

Most companies that prepare departmental income statements also prepare departmental balance sheets.

A department with sales of $75,000 and cost of goods sold of $55,000 has a gross profit of $20,000.

The toy department of a department store would be a profit center.