Question
Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a
Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a central accounting department. The cost of the accounting department for last year was $229,000. Following are the operating results for the two stores for the year. Main Street Lakeland Mall Sales revenues $ 2,166,560 $ 2,757,440 Number of computers sold 2,640 1,760 Required: a. Allocate the cost of the central accounting department to the two stores based on: 1. Number of computers sold. (Do not round intermediate calculations.) 2. Store revenue. (Do not round intermediate calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started