The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the month of
Question:
The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the month of December.
Corporate legal office salaries:……………………………………………………..$ 68,000
Shoe Department cost of sales: Brentwood Store………………………………….$ 66,000
Corporate headquarters building lease:………………………………........…………….$ 86,000
Store manager's salary, Brentwood Store:…………………………………........………$ 10,000
Shoe Department sales commissions, Brentwood Store:…………………………..$ 5,000
Store utilities, Brentwood Store:…………………………………………………................$11,000
Shoe Department manager's salary, Brentwood Store:…………………………….$ 3,000
Central warehouse lease cost:………………………………………………………$ 3,000
Janitorial costs, Brentwood Store…………………………………………………$ 11,000
The Brentwood store is just one of many stores owned and operated by the company. The shoe department is one of the many departments at the Brentwood store. The central warehouse serves all of the company's stores.
What is the total amount of the costs listed above that are direct costs of the shoe department?
$66,000
$74,000
$106,000
$71,000
Expert Answer:
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
