Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $60,100 and purchasing department expenses of $43,000 of Cozy Bookstore
Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $60,100 and purchasing department expenses of $43,000 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 $ 163,800 97,500 128,700 $390,000 Purchase Orders 984 648 768 2,400 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 Percent of Allocation Base Numerator Denominator % of Total Advertising 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 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 $ 859,000 $ 60,100 $ 43,000 $ 231,900 Magazines Newspapers $ 171,800 $ 352,200 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 859,000 Allocation of Exp Alloc of Serv Dept>
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