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Answer and show your solution Problem 9-5 (AICPA Adapted) Brock Company reported operating expense categories, namely distribution and administr expense and loss accounts for current
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Problem 9-5 (AICPA Adapted) Brock Company reported operating expense categories, namely distribution and administr expense and loss accounts for current year. One. rented premises is occupied by the sales de One-half of the department. adjusted trial balance at year-end included the follhe Accounting and legal fees Advertising Freight out Interest Loss on sale oflong-term investment Officers'salaries Rent for office space Sales salaries and commissions 1,200,000 1,500,000 800,000 700,000 300,000 2,250,000 2,200,000 1,400,000 What amount should be reported as distribution costs? a. 4,800,000 b. 4,000,000 c. 3,700,000 d. 3,600,000 Problem 9-6 (AICPA Adapted) Lee Company reported the following data for the current year: Legal and audit fees Rent for office space equally shared by sales 1,700,000 2,400,000 and accounting Interest on inventory loan Loss on abandoned data processing equipment Freight in Freight out Officers' salaries Insurance Sales representative salaries Research and development expense 2,100,000 350,000 1,750,000 1,600,000 1,500,000 850,000 2,150,000 1,000,000 What amount should be classified as administrative expen a. 5,250,000 b. 6,450,000 c. 5,600,000 d. 6,250,000 202 Step by Step Solution
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