Answer Happy

Divisional Income Statements with Service Department
Charges
Yozamba Technology has two divisions, Consumer and Commercial,
and two corporate service departments, Tech Support and Purchasing.
The corporate expenses for the year ended December 31, 20Y7, are as
follows:
The other corporate administrative expenses include officers’
salaries and other expenses required by the corporation. The Tech
Support Department charges the divisions for services rendered,
based on the number of computers in the department, and the
Purchasing Department charges divisions for services, based on the
number of purchase orders for each department. The usage of service
by the two divisions is as follows:
The service department charges of the Tech Support Department
and the Purchasing Department are considered controllable by the
divisions. Corporate administrative expenses are not considered
controllable by the divisions. The revenues, cost of goods sold,
and operating expenses for the two divisions are as follows:
Prepare the divisional income statements for the two divisions.
Do not round your interim calculations.
Gross profitIncome from operationsOperating
expensesRevenuesRevenues
Cost of goods soldGross profitIncome from operationsTech support
departmentCost of goods sold
Gross profitLoss from operationsOperating expensesRevenuesGross
profit
Income from operationsLoss from operationsOperating
expensesPurchasing departmentLoss from operations
Cost of goods soldIncome from operationsOperating expensesTech
support departmentTech support department
Gross profitIncome from operationsOperating expensesPurchasing
departmentPurchasing department
Gross profitIncome from operationsIncome from operations before
service department chargesLoss from operationsIncome from
operations