osts transferred out 47,5 2, 500 Vork in process, ending otal costs accounted fo

Question

osts transferred out 47,5 2, 500 Vork in process, ending otal costs accounted for , 100 d 2100 600 2. (10 points) Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $150,000 are allocated based on the number of computer log-on hours. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments

Explanation / Answer

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Wahehousing Date Center Music Books Department Department Budgeted costs before any departmental cost 350000 150000 125000 150000 allocation Warehouse hours 1000 1500 Allocation of warehouse costs -350000 140000 210000 Data Center hours 800 1000 Allocation of Data Center costs -150000 66667 83333 Total Costs after allocation 0 0 331667 443333

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