Daily Fashion insurance expense for the year totaled $30,000 and is to be allocated on the basis

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Daily Fashion insurance expense for the year totaled $30,000 and is to be allocated on the basis of the book value of the inventory and equipment in each department. Compute the amount to be allocated to each department.

Selected financial data, as of December 31, 2016, for Daily Fashion, a discount retail store, follows. Round all calculations to the nearest percentage point and nearest dollar.

Credit sales

Women's clothing.................$700,000

Men's clothing.....................$260,000

Total sales

Women's clothing................$840,000

Men's clothing....................$300,000

Sales returns and allowances

Women's clothing

Credit sales..........................$7,000

Cash sales..............................$600

Men's clothing

Credit sales..........................$3,000

Cash sales..............................$600

Book value of inventory and equipment

Women's clothing...............$150,000

Men's clothing.....................$50,000

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College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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