Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and...

 

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Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow: Purch. Sales Department Sales $92,160 23 169,120 180,640 Cost of Goods Sold Footage Advertising Service Departments Allocation Basis Sales Advertising.. Purchasing. Purchasing Square Orders Issued $36,864 1,728 1,260 3,024 1,680 1,296 12,310 32,832 132,256 Determine the service department expenses to be allocated to Sales Department 1 for (round answers to whole dollars): Cost $10,000 No. of purchase orders issued 12,000 15) Williams Co. operates three separate departments (R, S, T). The data below is provided for the current year: Total Sales............... Cost of Goods Sold.... Direct Expense.. Indirect Expenses... $120,000 ($40,000 from each department) $ 80,000 (50% from R; 25% from S; 25% from T) $ 26,000 ($6,000 from R; $12,000 from S: $8,000 from T) $ 9,000 Required: Prepare an income statement showing the departmental contributions to overhead for the current year. Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow: Purch. Sales Department Sales $92,160 23 169,120 180,640 Cost of Goods Sold Footage Advertising Service Departments Allocation Basis Sales Advertising.. Purchasing. Purchasing Square Orders Issued $36,864 1,728 1,260 3,024 1,680 1,296 12,310 32,832 132,256 Determine the service department expenses to be allocated to Sales Department 1 for (round answers to whole dollars): Cost $10,000 No. of purchase orders issued 12,000 15) Williams Co. operates three separate departments (R, S, T). The data below is provided for the current year: Total Sales............... Cost of Goods Sold.... Direct Expense.. Indirect Expenses... $120,000 ($40,000 from each department) $ 80,000 (50% from R; 25% from S; 25% from T) $ 26,000 ($6,000 from R; $12,000 from S: $8,000 from T) $ 9,000 Required: Prepare an income statement showing the departmental contributions to overhead for the current year.

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Answer To determine the service department expenses to be allocated to Sales Department 1 at Arkansas Toys we need to allocate the costs of the servic... View the full answer