Advertising department expenses of $36,600 and purchasing department expenses of $26,200 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.

Department

Sales

Purchase Orders

Books

$

179,400

644

Magazines

81,900

406

Newspapers

128,700

350

Total

$

390,000

1,400

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.)

Advertising	Allocation Base	Percent of Allocation Base			Cost to be Allocated	Allocated Cost
Department	Sales	Numerator	Denominator	% of Total
Books Dept.				0
Magazines Dept.				0
Newspapers Dept.				0
Totals				0
Purchasing	Allocation Base	Percent of Allocation Base			Cost to be Allocated	Allocated Cost
Department		Numerator	Denominator	% of Total
Books Dept				0
Magazines Dept				0
Newspapers Dept				0
Totals				0

COZY BOOKSTORE
			Allocation of Expenses to Departments
Allocation Base	Expense Account Balance	Advertising Dept.	Purchasing Dept.	Books Dept.	Magazines Dept.	Dept.Newspapers Dept.
Total department expenses	$523,000	$36,600	$26,200	$146,400	$104,600	$209,200
Advertising Dept. Sales
Purchasing Dept. Purch. orders
Total expenses allocated to operating depts.	$523,000	$36,600	$26,200	$146,400	$104,600	$209,200

Answer rating: 100% (QA)

Advertising Allocation Base Percent of Allocation Base Cost to be ... View the full answer