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Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $38,900 and purchasing department expenses of $38,900 of Cozy Bookstore

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Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $38,900 and purchasing department expenses of $38,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 180,000 188,888 72,000 $360,000 Purchase Orders 984 600 816 2,400 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments Complete this question by entering your answers in the tabs below. Dept Allocation of Alloc of Serv Exp Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Purchasing Department Books Magazines Newspapers Totals + Alloc of Serv Dept> Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Exp 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 Magazines News RAS Total department expenses $ 555,000 $ 38,900 $ 38,900 $144,300 $ 111,000 $ 221,900 Service Dept. Expenses Advertising Dept Purchasing Dept Total expenses allocated 555,000 $

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