Question 18

2 parts

Advertising department expenses of $42,800 and purchasing department expenses of $32,100 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 $ 180,000 1,170 Magazines 108,000 520 Newspapers 112,000 Total $400,000 2,600 Books 910 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 Sery Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines 0 Newspapers Totals 0 0 0 Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Department Books Denominator % of Total 0 0 Magazines Newspapers Totals 0 O Alloc of Serv Dept> Advertising department expenses of $42,800 and purchasing department expenses of $32,100 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 $ 180,000 1,170 Magazines 108,000 520 Newspapers 112,000 910 Total $400,000 2,600 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 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 expenses $ 535,000 $ 42,800 $ 32,100 $ 112,400 $ 107.000 $ 240,700 Service Dept. Expenses Advertising Dept Purchasing Dept Total expenses allocated $ 535,000 $ 42,800 $ 32,100 $ 112.400 $ 107,000 $ 240,700 (Allocation of Esp Alles of Dept>