Question
Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $25,000 and purchasing department expenses of $56,200 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.
Department Sales Purchase Orders Books $ 186,200 546 Magazines 95,000 364 Newspapers 98,800 390 Total $ 380,000 1,300
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
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