Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $85,600 and purchasing department expenses of $51,400 of Cozy Bookstore

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $85,600 and purchasing department expenses of $51,400 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 $193,200 109,200 117,680 $420,000 Purchase Orders 1,551 693 1,056 3,300 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. 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. Advertising Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Department Books Magazines Newspapers Totals 0 O 0 Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Percent of Allocation Base Numerator Denominator % of Total 0 0 Magazines Newspapers Totals 0 0 Alles 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 Newspapers Total department expenses $ 856,000 $ 85,600 $ 51,400 $ 214,000 $ 171,200 $ 333.800 Service Dept. Expenses Advertising Dept Purchasing Dept. Total expenses allocated $ 856,000 $ 85,600 $ 51,400 $ 214,000 $ 171,200 $ 333,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers An Alternative To Debits And Credits

Authors: Gary A. Porter, Curtis L. Norton

3rd Edition

0030335639, 978-0030335631

More Books

Students also viewed these Accounting questions

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago

Question

Illustrate the link between business

Answered: 1 week ago