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Exercise 24-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,200 and purchasing department expenses of $45,800 of Cozy Bookstore
Exercise 24-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,200 and purchasing department expenses of $45,800 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 $167,200 76,000 136,800 $380,000 Purchase Orders 1,290 900 810 3,000 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 Alloc of Serv Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Cost to be Advertising Allocation Base Percent of Allocation Base 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 Allocation of Exp 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 Newspapers Total department $ 572,000 $ 57,200 $ 45,800 $114,400 $ 114,400 $ 240,200 expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 572,000
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