FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 24: Departmental Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

A department with sales of $120,000;cost of goods sold of $75,000;and operating expenses of $20,000 has a gross profit of $45,000.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

General employee insurance.________

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

To determine how each profit center is performing,management would analyze the:

When a company tracks gross profit by department,the sales journal will:

Which of the following would be a direct expense for a shoe department in a department store?

On a departmental income statement,sales less cost of goods sold and direct expenses equals:

Rent paid for the building of department store.________

The financial statement(s) that cannot be broken down by departments would be:

Julia Company allocates its indirect advertising expenses based on each department's gross sales.If the men's apparel department has gross sales of $200,000 out of a total of $2,000,000 in gross sales,what fraction would Julia use to allocate its indirect advertising expenses?

Below is a list of departments; you are to identify each as either [1] a profit center or [2] a cost center. -The tax offices of a CPA firm.________

From the following,calculate income by departments. $\begin{array} { l r r } & \text { Dept. 1 } & \text { Dept. 2 } \\\text { Net Sales } & \$ 8,000 & \$ 6,500 \\\text { Cost of Goods Sold } & 5,000 & 3,200 \\\text { Delivery Expense } & 570 & 420 \\\text { Advertising Expense } & 390 & 310 \\\text { Depreciation Expense } & 620 & 530\end{array}$

The candy department experienced the following revenue and expenses during October: $\begin{array} { | l | r | } \hline \text { Sales } & \$ 13,500 \\\hline \text { Cost of Goods Sold } & 7,600 \\\hline \text { Direct Operating Expenses } & 1,000 \\\hline \text { Indirect Operating Expenses } & 700 \\\hline\end{array}$ The candy departmental net income is:

Which of the following is normally the report prepared for a department?

A profit center and a cost center both generate costs.

The PPC department of Ajax shows gross sales of $805,500 for computer supplies and $910,500 for office supplies.The cost of the computer supplies was $525,000 and the cost of the office supplies was $485,000.What is the gross profit for each category of the department respectively?

Explain the difference between a "cost center" and a "profit center."

Electricity for the general lighting in a department store.________

Indirect expenses are those expenses that:

Calculate the costume jewelry department net income given the following: $\begin{array} { | l | r | } \hline \text { Sales } & \$ 1,450 \\\hline \text { Direct operating expenses } & 300 \\\hline \text { Indirect operating expenses } & 250 \\\hline \text { Cost of goods sold } & 600 \\\hline\end{array}$

Advertising expense totaled $40,000.If indirect advertising costs are allocated based on gross sales per department,what amount would be allocated to the Jewelry department if $10,000 of advertising is indirect? Gross Sales: Jewelry,$60,000;Glassware,$50,000;Watches,$40,000.