Answer Happy

Pink Company operates a store with two departments: Videos and Music. Information about those departments follows: Videos Music Sales $370,500 $279,500 Cost of Goods Sold 320,000 175.000 Operating Expenses: Salaries 35,000 25,000 Maintenance 12,000 10,000 Utilities 5,000 4,500 Insurance 4,200 3,700 The company also incurred the following service department charges: Advertising $15,000 Salaries 27,000 Office Expenses 3,200 Service department charges are allocated to the departments as follows: advertising on the basis of sales, salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows: Department Square Footage Number of Employees Videos 5,000 3 Music 3,000 2 Directions: Use the above information to prepare a Divisional Income Statement for Pink Company for the year ended December 31, 2019.