chapter 22 question 9

Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $42,800 and purchasing department expenses of $32,100 of Cozy Bookstore are allocated operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for three operating departments follows. Department Books Magazines Newspapers Total Sales $ 180,000 108,000 112,000 $ 400,000 Purchase Orders 1,170 520 910 2,600 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the thr operating departments. Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Advertising Department Books Numerator Denominator % of Total Magazines Newspapers Totals Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Advertising Department Numerator Denominator % of Total Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Numerator Denominator % of Total Books Magazines Newspapers Totals each of Exp Alloc of Serv Dept> Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the spreadsheet 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.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books $ 535,000 $ 42,800 $ 32,100 $ 112,400 Magazines Newspapers $ 107,000 $ 240,700 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 535,000