Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount$144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:
Construction Division
Please complete a performance report, the divisional income statement, for the Construction Division, using the format shown here:
Construction Division Income Statement

Question

Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount$144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:
Construction Division
  Please complete a performance report, the divisional income statement, for the Construction Division, using the format shown here:
Construction Division Income Statement

Quizplus · Accepted Answer

The Answer of Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount$144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:
Construction Division
  Please complete a performance report, the divisional income statement, for the Construction Division, using the format shown here:
Construction Division Income Statement

Henderson Industrial Products Uses a Centralized Service Department for Procurement