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Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,300 and purchasing department expenses of $20,200 of Cozy Bookstore

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Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,300 and purchasing department expenses of $20,200 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 $182,400 87,400 110,200 $380,000 Purchase Orders 1,025 625 850 2,500 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 Department Books Magazines Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Totals Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,300 and purchasing department expenses of $20,200 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 $182,400 87,400 110,200 $380,000 Purchase Orders 1,025 625 850 2,500 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 ...... " ............ the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Am (Amounts to be deducted should be indicated with minus sign.). .............................................................................................. COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books $ 506,000 $ 25,300 $ 20,200 $ 101,200 Magazines Newspapers $ 101,200 $ 258,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 506,000

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