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Advertising department expenses of $31,600 and purchasing department expenses of $63,300 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $31,600 and purchasing department expenses of $63,300 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 Books Magazines Newspapers Total Sales $ 200,000 84,000 116,000 $ 400,000 Purchase Orders 552 348 300 1,200 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. 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 of Exp Alloc of Serv Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books Magazines Newspapers $ 791,000 $ 31,600 $ 63,300 $ 221,500 $ 158,200 $ 316,400 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept Total expenses allocated $ 791,000 $ 31,600 $ 63,300 $ 221,500 $ 158,200 $ 316,400
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