The following data were summarized from the accounting recordsfor Huggins Constr

Question

The following data were summarized from the accounting recordsfor Huggins Construction company for the year ended June 30,2008.

Cost of goods sold:

ResidentialDivision               300,000

IndustrialDivision                 167,840

Administrative expenses:

ResidentialDivision               80,320

IndustrialDivision                 66,560

Service Department:

ResidentialDivision               54,240

IndustrialDivision                 24,960

Net Sales:

ResidentialDivision               516,000

IndustrialDivision                 321,920

Prepare divisional statements for Huggins ConstructionCompany.

(Note: Residential Division income from operations,$80,640)

Explanation / Answer

Sales revenues - COGS = Gross Profit - Operating expenses = Net income
Just separate the categories for the residential andindustrial division, and set up as above. Remember to includethe name of the company, the name of the statement, and the periodthat the income statement covers.
P.S. - Your check figure of $80,640 is wrong by $800 (unlessyou left out some information or made a typo).

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