Cost of goods sold: | Service department charges:
Commercial Division $732,200 | Commercial Division $
Residential Division 338,940 | Residential Division 54,264
Administrative expenses: | Net sales:
Commercial Division $119,840 | Commercial Division $1,083,600
Residential Division 102,900 | Residential Division 595,000
Prepare divisional income statements for Endless River Construction Company.
Answer:
ENDLESS RIVER CONSTRUCTION COMPANY
Divisional Income Statements
For the Year Ended June 30, 2014
Commercial
Division
Residential
Division
Net sales $1,083,600 $595,000
Cost of goods sold 732,200 338,940
Gross profit $ 351,400 $256,060
Administrative expenses 119,840 102,900
Income from operations before service
department charges $ 231,560 $153,160
Service department charges 90,048 54,264
Income from operations $ 141,512 $ 98,896
