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Vaughn CoOperates Three Separate Departments (A,B,C) Required: Prepare an Income Statement Showing the Departmental Contributions to for the Current

Question 123

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Vaughn Co.operates three separate departments (A,B,C).The data below are provided for the current year:
 Total sales $120,000($40,000 from each department)  Cost of goods sold 80,000(50% from A;25% from B;25% from C) Direct expense 26,000$$6,000 from A;$12,000 from B;$8,000 from C) Indirect expenses 9,000\begin{array} { l r l } \text { Total sales } & \$ 120,000 & ( \$ 40,000 \text { from each department) } \\\text { Cost of goods sold } & 80,000 & ( 50 \% \text { from } A ; 25 \% \text { from } B ; 25 \% \text { from } C ) \\\text { Direct expense } & 26,000 & \$ \$ 6,000 \text { from } A ; \$ 12,000 \text { from } B ; \$ 8,000 \\& & \text { from } C ) \\\text { Indirect expenses } & 9,000 &\end{array}
Required: Prepare an income statement showing the departmental contributions to overhead for the current year.

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