File Edt View History Bookmarks Develop Window Help Advertsing depariment expens

Question

File Edt View History Bookmarks Develop Window Help Advertsing depariment expenses of $24,000 and purchasing department experses of $34,000 of Cozy Bookstore are allocated to operating departiments on the basis of doliar sales and parchase orders, respectively. Inforenation about the allocation bases for the three operating departments follows $ 495,000 516 207,000 s $00,000 1,200 Complete the folowng tatia by allocatre expenses of the two sonce departments (advertising and purchasing) to the thros operating departmants (Amounts to be deducted should be indicated with minus sign Sales Numerator %af Total 495x 5 96X 207X 55 $ Books Dept Magezines Dect Newspapers Dept 24,000S 24,000 900x 5,200 5,520 24,000 23 Numer of onars Numerator 34,000 34,000 34,000 43 $ Books Dept Magazines Dept 27 100 10,.200 9,180 34.000

Explanation / Answer

Solution:

Advertising Allocation Base Percent of Allocation Base Cost to be allocated Allocated cost Department Sales Numerator Denominator % of total Books Dept Sales 495,000 900,000 55% 24,000                    13,200 Magazines Dept Sales 198,000 900,000 22% 24,000                      5,280 Newspaper Dept Sales 207,000 900,000 23% 24,000                      5,520 Totals 900,000 100%                    24,000

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