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Advertising department expenses of $54,100 and purchasing department expenses of $33,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $54,100 and purchasing department expenses of $33,800 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 Department Books Magazines Newspapers Sales Purchase Orders 1,440 756 1,404 $143,500 70,000 136,500 Total $350,000 3,600 Complete the following table 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.) Advertising Allocation Base Percent of Allocation Base Cost to be AllocatedAllocated Cost Department Numerator Denominator | % of Total Books Dept Magazines Dept Newspapers Dept Totals Purchasing Allocation Base Percent of Allocation Base Cost to be AllocatedAllocated Cost Department Numerator Denominator | % of Total Books Dept Magazines Dept Newspapers Dept Totals COZY BOOKSTORE llocation of Expenses to Departments ExpenseAdvertising Purchasing Books Dept. Magazines Dept Account Dept.Newspapers Allocation Base Dept. Dept. Balance Total department expenses $ 676,000$ 54,100 $ 33,800$175,800 $ 135,200S 277,100 Advertising Dept. Sales Purchasing Dept. Purch. orders Total expenses allocated to operating depts $676,000
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