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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $36,600 and purchasing department expenses of $26,200 of Cozy Bookstore
Exercise 9-3 Service department expenses allocated to operating departments LO P2
Advertising department expenses of $36,600 and purchasing department expenses of $26,200 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 | Sales | Purchase Orders | ||||
Books | $ | 179,400 | 644 | |||
Magazines | 81,900 | 406 | ||||
Newspapers | 128,700 | 350 | ||||
Total | $ | 390,000 | 1,400 | |||
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
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