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.

Complete the following table 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.)

 

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Advertising Percent of Allocation Base Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals COZY BOOKSTORE Allocation of Expenses to Departments Expense Advertising Purchasing Dept.Newspapers Allocation Base Account Books Dept. Magazines Dept. Dept. Dept. Dept. Balance Total department expenses 535,000 S 42,800 S 32,100 s 112,400 S 107.000 s 240,700 Advertising Dept. Sales Purchasing Dept. Purch. orders Total expenses allocated to 535,000 operating depts. Advertising Percent of Allocation Base Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals COZY BOOKSTORE Allocation of Expenses to Departments Expense Advertising Purchasing Dept.Newspapers Allocation Base Account Books Dept. Magazines Dept. Dept. Dept. Dept. Balance Total department expenses 535,000 S 42,800 S 32,100 s 112,400 S 107.000 s 240,700 Advertising Dept. Sales Purchasing Dept. Purch. orders Total expenses allocated to 535,000 operating depts.

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Solution Advertising Allocation base Cost to be Allocated Allocated Cost Departm... View the full answer