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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 $220,000. Following are the operating results for the two stores for the year.
Main Street | Lakeland Mall | |||||
Sales revenues | $ | 1,981,560 | $ | 2,736,440 | ||
Number of computers sold | 2,262 | 1,638 | ||||
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.)
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