Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carryit, Inc. sells specialty purses, backpacks and messenger bags. The company began operations in January 2020 with one store location and one administrative (service) office

Carryit, Inc. sells specialty purses, backpacks and messenger bags. The company began operations in January 2020 with one store location and one administrative (service) office location. Its departmental income statement for 2022 follows.

Carryit, Inc. For the Year Ended December 31, 2022

Purses Backpacks Messenger Bags Combined
Sales $260,400 $235,600 $124,000 $620,000
Cost of goods sold 124,992 134,292 53,320 312,604
Gross profit 96,550 76,475 57,075 230,100
Direct expenses
Sales salaries 40,000 30,000 25,000 95,000
Advertising 1,320 990 950 3,260
Store supplies used 800 420 350 1,570
Depreciation of equipment 3,000 1,500 250 4,750
Total direct expenses 45,120 32,910 26,550 104,580

Rent expense $15,000
Utilities expense $6,000
Insurance expense $32,000
Administrative office costs $88,000

Square Feet Insured Assets
Purses 2,750 $600,000
Backpacks 1,500 $250,000
Messenger Bags 750 $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.

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 with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions

Question

If S Corp. has C E&P give order of distributions: 1. 2. 3.

Answered: 1 week ago

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago