Advertising department expenses of $42,800 and purchasing department expenses of $32,100 of Cozy Bookstore are...
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Accounting
Advertising department expenses of $42,800 and purchasing department expenses of $32,100 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
Department
Sales
Purchase Orders
Books
$
180,000
1,170
Magazines
108,000
520
Newspapers
112,000
910
Total
$
400,000
2,600
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.)
sing Allocation Base f Allocatio Cost to be Allocated Allocated Cost Numerstor %Of Total Books Dept Magazines Dept Newspapers Dept Totals sing Allocation Base f All Cost to be Allocated Allocated Cost Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals COZY BOOKSTORE Expense Advertising Account sing Purchasi Purchasing Books Dept. Dept.N Base Magazines Dept. Dept Dept Dept Total department expenses S 535,000 S 42,800 S 32,100 S 112,400 S 107,000 S 240,700 Advertising Dept. Sales Purchasing Dept. Purch. orders Tota operating depts. l expenses allocated to S 535,000
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