Advertising and purchasing department expenses of departments on the basis of do

Question

Advertising and purchasing department expenses of departments on the basis of dollar sales and purchase orders, respectivel bases for the three operating departments follows. Bookworm Bookstore are allocated to operating y Information about the allocation Department Sales Purchase Orders Books Magazines Newspapers $448,000 144.000 208,000 424 312 264 Total S 800,000 1,000 Complete the following table by allocating the expenses of the two senvice departments (advertising and purchasing) to the three operating departments. (Do not round your intermediate calculations and round final answers to the nearest dollar amount. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Allocation of Expenses to Departments Expense Allocation Account Balance Advertising Dept Books Dept Magazines Dept Newspapers Base Dept 425.000 Total department expenses Advertising department Purchasing department Total expenses allocated to 654,000 22.000 S 30000 86,000 $ 91,000 Service department expenses Sales Purch orders operating departments

Explanation / Answer

Allocation of Expenses to Departments Allocation base Expense Account Balance Advertising Department Purchasing Department Books Department Magazines Department Newspapers Department Total department expenses 654000 22000 30000 425000 86000 91000 Service department expenses Advertising department Sales -22000 12320 3960 5720 Purchasing department Purchase orders -30000 12720 9360 7920 Total expenses allocated to operating departments 654000 0 0 450040 99320 104640

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