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

question 50

Essay

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

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Definitions:

Violent Rebellion

An uprising or insurrection against established authority or government that involves physical force or warfare.

Cultural Control

The mechanisms and norms within a society that regulate individuals' behaviors and maintain societal order.

Sanctions

Official actions by one or more countries against another country or individual to force compliance with laws or regulations, often involving trade restrictions or economic measures.

Arbitrary

Based on individual discretion or preference rather than any objective criterion, rule, or law; often implies a lack of rationale or predictability.