Advertising department expenses of $88,600 and purchasing department expenses of

ID: 2456503 • Letter: A

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Advertising department expenses of $88,600 and purchasing department expenses of $44,300 of Cozy Bookstore are allocated to operating cepart merits on the basis of dollar sales and purchase orders. respectively. Information about the allocation bases for the three operating departments follows. 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.)

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Advertising Allocation Base % of Allocation base Cost to be allocated Allocated cost Department Numerator Denominator % TOTAL Book dept Sales 202400 440000 46 88600 40756 Magazine Dept Sales 123200 440000 28 88600 24808 Newspaper Dept Sales 114400 440000 26 88600 23036

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Advertising department expenses of $59,700 and purchasing department expenses of

Advertising expenditures 78,000 Cost of goods sold 2,433,000 Depreciation 78,000

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Advertising department expenses of $88,600 and purchasing department expenses of

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