Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,000 and purchasing department expenses of $56,200 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 $ 186, 200 95,000 98,800 $ 380,000 Purchase Orders 546 364 390 1,300 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. Allocation Base Cost to be Allocated Allocated Cost Advertising Department Books Percent of Allocation Base Numerator Denominator % of Total Magazines Newspapers I I Totals Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Percent of Allocation Base Numerator Denominator % of Total Magazines Newspapers Totals Allocation of Exp Alloc of Serv Dept> Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv 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 $ 624,000 $ 25,000 $ 56,200 $ 168,500 Magazines Newspapers $ 124,800 $ 249,500 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 624,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started