Question: Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a
Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a central accounting department. The cost of the accounting department for last year was $196,000. Following are the operating results for the two stores for the year.
| Main Street | Lakeland Mall | |||||
| Sales revenue | $ | 2,503,900 | $ | 2,606,100 | ||
| Number of computers sold | 2,596 | 1,804 | ||||
Required:
a. Allocate the cost of the central accounting department to the two stores based on:
1. Number of computers sold.
2. Store revenue.
Store revenue. (Do not round intermediate calculations.)
Complete this question by entering your answers in the tabs below.
- Req A1
- Req A2
Number of computers sold. (Do not round intermediate calculations.)
|
|
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
