Part 1

Part 2

Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $88,600 and purchasing department expenses of $44,300 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 Sales Purchase Orders 202,400 123,200 861 Magazines Newspapers 609 114,400 630 440,000 Total 2,100 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. Alloc of Serv Allocation of 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 Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Allocation Base Advertising Department Books Magazines Newspapers Totals Percent of Allocation Base Purchasing Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $88,600 and purchasing department expenses of $44,300 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. Sales Purchase Orders Department Books 202,400 861 Magazines Newspapers 123,200 114,400 609 630 440,000 Total 2,100 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 Dept Exp 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 News papers 886,000 88,600 44,300 $248,100 177,200 327,800 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated 886,000 Allocation of Exp Alloc of Serv Dept