Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carryit, Inc. Carryit, Inc. sells specialty purses, backpacks and messenger bags. The company began operations in January 2021 with one store location and one administrative

Carryit, Inc. Carryit, Inc. sells specialty purses, backpacks and messenger bags. The company began operations in January 2021 with one store location and one administrative (service) office location. Its departmental income statement for 2021 follows. Carryit, Inc. For the Year Ended December 31, 2021 Departmental Income Statement: Purses Backpacks Messenger Bags Combined Sales $224,280 $202,920 $106,800 $534,000 Cost of goods sold 110,113 123,554 49,500 283,166 Gross profit 114,167 79,366 57,300 250,834 Direct expenses: Sales salaries 40,000 30,000 25,000 95,000 Advertising 1,320 990 950 3,260 Store supplies used 795 424 350 1,569 Depreciation of equipment 3,000 1,500 250 4,750 Total direct expenses 45,115 32,914 26,550 104,579 Expenses to Be Allocated: Rent expense $15,000 Utilities expense $ 5,500 Insurance expense $30,000 Administrative office costs $75,000 Other Information: Square Feet Insured Assets Purses 2,600 $620,000 Backpacks 1,400 $230,000 Messenger Bags 1,000 $150,000 Total 5,000 $1,000,000 The company allocates rent and utilities expenses based on square feet occupied. Insurance expense is allocated based on the value of insured assets. The administrative office department is allocated based on sales. Required: Calculate the allocated expenses and complete the departmental allocation below. Enter NUMBERS ONLY. DO NOT enter dollar signs ($) or special characters. Allocation: Purses Backpacks Messenger Bags Combined Allocated expenses: Rent expense Utilities expense Insurance expense Share of office dept. expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles And Theory Of Oil And Gas Accounting

Authors: U. E. Etowa, J. O. Udoayang

1st Edition

1387068229, 978-1387068227

More Books

Students also viewed these Accounting questions

Question

What do the three panels of the three panel approach cover?

Answered: 1 week ago