Divisional Income Statements The following data were summarized from the account

Question

Divisional Income Statements

The following data were summarized from the accounting records for DeSalvo Construction Company for the year ended June 30, 2014:

Prepare divisional income statements for DeSalvo Construction Company.

DeSalvo Construction Company

Divisional Income Statements

For the Year Ended June 30, 2014

Commercial Division

Residential Division

  

$  

$  

  

  

  

  

$  

$  

  

  

  

  

$  

$  

  

  

  

  

$  

$  

Cost of goods sold: Service department charges: Commercial Division $574,780 Commercial Division $78,380 Residential Division 287,740 Residential Division 49,840 Administrative expenses: Net sales: Commercial Division $104,510 Commercial Division $870,880 Residential Division 102,760 Residential Division 513,820

Explanation / Answer

Solution:

Commercial Division Residential Division Net sales 870,880 513,820 COGS 574,780 287,740 Gross profit 296,100 226,080 Administrative expenses 104,510 102,760 Income from opertaions before service department charges 191,590 123,320 Service department charges 78,380 49,840 Income from opertaion 113,210 73,480

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