Selected financial data, as of year end, December 31, for Fancy Fashion, a children's retail store, follows. Credit sales Women's clothing $ 590,000 Men's clothing $ 190,000 Total sales Women's clothing $ 741,000 Men's clothing $ 249,000 Sales returns and allowances Women's clothing Credit sales $ 5,900 Cash sales $ 490 Men's clothing Credit sales $ 1,900 Cash sales $ 490 Book value of inventory and equipment Women's clothing $ 243,000 Men's clothing $ 57,000 

Required: Fancy Fashion insurance expense for the year totaled $19,000 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.

Answer rating: 100% (QA)

To allocate the insurance expense to each department Womens clothing and Mens clothing based on the ... View the full answer