Advertising department expenses of $43,400 and purchasing department expenses of

ID: 2534600 • Letter: A

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Advertising department expenses of $43,400 and purchasing department expenses of $57,800 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. Purchase Department Books Magazines Newspapers Total Sales $175,000 105,000 Orders 984 672 744 2,400 70,000 $350,000 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments Complete this question by entering your answers in the tabs below. Allocation Alloc of of Exp Serv Dep Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Percent of Allocation Base Cost to be Allocated Allocated Cost dvertising Allocation Base Department Numerat Denominat otal Books Magazines Newspaper Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerat Denominat otal Books Magazines Newspaper Totals Allocation of Exp Alloc of Serv Dept >

Explanation / Answer

Percentage of allocation base Cost to be Allocated Advertising Allocation Numerator Denominator % of total Allocated Cost Base Department Books Dollar Sales 175000 350000 50.00% 43400 21700 Magazines Dollar Sales 105000 350000 30.00% 43400 13020 Neswpaper Dollar Sales 70000 350000 20.00% 43400 8680 Total 350000 100.00% 43400 Percentage of allocation base Cost to be Allocated Purchasing Allocation Numerator Denominator % of total Allocated Cost Base Department Books Purchase order 984 2400 41.00% 57800 23698 Magazines Purchase order 672 2400 28.00% 57800 16184 Neswpaper Purchase order 744 2400 31.00% 57800 17918 Total 2400 100.00% 57800 Departmental Expense Allocation Spreadsheet Expense Total Advertisement Purchasing Books Magazines Newspaper Total Deptt expense 723000 43400 57800 195200 144600 282000 Service deptt expense Advertising -43400 21700 13020 8680 Purchasing -57800 23698 16184 17918 Total Expense allocated 723000 0 0 240598 173804 308598

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Advertising department expenses of $42,800 and purchasing department expenses of

Advertising department expenses of $43,400 and purchasing department expenses of

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Advertising department expenses of $43,400 and purchasing department expenses of

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