Advertising department expenses of $85,600 and purchasing department expenses of $51,400 of Cozy Bookstore are...
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Accounting
Advertising department expenses of $85,600 and purchasing department expenses of $51,400 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
$
193,200
1,551
Magazines
109,200
693
Newspapers
117,600
1,056
Total
$
420,000
3,300
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
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