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Advertising department expenses of $38,900 and purchasing department expenses of $38,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $38,900 and purchasing department expenses of $38,900 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 $180,000 108,000 72,000 $360,000 Purchase Orders 984 600 816 2,400 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 following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Cost to be Allocated Allocated Cost Advertising Department Books Percent of Allocation Base Numerator Denominator % of Total Magazines Newspapers Totals Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Percent of Allocation Base Numerator Denominator % of Total Magazines Newspapers Totals Allocation of Exp Alloc of Serv Dept> 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 $ 555,000 $ 38,900 $ 38,900 $ 144,300 Magazines Newspapers $ 111,000 $ 221,900 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 555,000
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