Emma Fuentes and Carol Toner are partners in a business called Jump Start Corporation that sells athletic equipment. They have organized the business into three departments based on the type of merchandise sold. At the end of the first year of operations, the sales and cost of goods sold for the three departments are shown below: $\begin{array}{lrrr}&\text { Dept. A }&\text { Dept. B }&\text { Dept. C }\
\text { Sales } & \$ 54,400 & \$ 78,600 & \$ 24,600 \
\text { Cost of goods sold } & 41,400 & 39,200 & 11,600
\end{array}$
Required:
Prepare the gross profit section of a departmental income statement for the year ended December 31. Show the gross profit for each department and for the business as a whole.

Question

Emma Fuentes and Carol Toner are partners in a business called Jump Start Corporation that sells athletic equipment. They have organized the business into three departments based on the type of merchandise sold. At the end of the first year of operations, the sales and cost of goods sold for the three departments are shown below: $\begin{array}{lrrr}&\text { Dept. A }&\text { Dept. B }&\text { Dept. C }\
\text { Sales } & \$ 54,400 & \$ 78,600 & \$ 24,600 \
\text { Cost of goods sold } & 41,400 & 39,200 & 11,600
\end{array}$ ​
Required:
Prepare the gross profit section of a departmental income statement for the year ended December 31. Show the gross profit for each department and for the business as a whole.

Quizplus · Accepted Answer

The Answer of Emma Fuentes and Carol Toner are partners in a business called Jump Start Corporation that sells athletic equipment. They have organized the business into three departments based on the type of merchandise sold. At the end of the first year of operations, the sales and cost of goods sold for the three departments are shown below: $\begin{array}{lrrr}&\text { Dept. A }&\text { Dept. B }&\text { Dept. C }\
\text { Sales } & \$ 54,400 & \$ 78,600 & \$ 24,600 \
\text { Cost of goods sold } & 41,400 & 39,200 & 11,600
\end{array}$ ​
Required:
Prepare the gross profit section of a departmental income statement for the year ended December 31. Show the gross profit for each department and for the business as a whole.

Emma Fuentes and Carol Toner Are Partners in a Business