Question
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 |
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