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 $190,000. Following are the operating results for the two stores for the year.
Main Street | Lakeland Mall | |||||
Sales revenue | $ | 2,283,300 | $ | 3,026,700 | ||
Number of computers sold | 1,802 | 1,598 | ||||
Required:
a. Allocate the cost of the central accounting department to the two stores based on:
1. Number of computers sold.
2. Store revenue.
Number of computers sold. (Do not round intermediate calculations.)
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Number of computers sold. (Do not round intermediate calculations.)
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