Aday Hotels operates a hotel in San Francisco with two departments. Below is the sales and gross profit data for the departments: SALES GROSS PROFIT DEPARTMENT A DEPARTMENT B TOTAL $559,500 $440,500 $100,500 $101,000 Indirect costs incurred by Aday Hotels are as follows: Indirect Expenses Property Taxes $24,000 Marketing $50,000 A B Here is a breakdown of the Square Footage of each department: Department Select one: SQ FT 60,000 40,000 $1,000,000 $201,500 Management has decided to distribute the Property Taxes based on SQ FT % and the Marketing expenses will be distributed based on the sales mix. Solve the following: Cost of Goods Sold for Department A a. $58,100 O b. $69,400 c. $127,500 d. $459,000
Aday Hotels operates a hotel in San Francisco with two departments. Below is the sales and gross profit data for the departments: SALES GROSS PROFIT DEPARTMENT A DEPARTMENT B TOTAL $559,500 $440,500 $100,500 $101,000 Indirect costs incurred by Aday Hotels are as follows: Indirect Expenses Property Taxes $24,000 Marketing $50,000 A B Here is a breakdown of the Square Footage of each department: Department Select one: SQ FT 60,000 40,000 $1,000,000 $201,500 Management has decided to distribute the Property Taxes based on SQ FT % and the Marketing expenses will be distributed based on the sales mix. Solve the following: Cost of Goods Sold for Department A a. $58,100 O b. $69,400 c. $127,500 d. $459,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:Aday Hotels operates a hotel in San Francisco with two
departments. Below is the sales and gross profit data for the
departments:
SALES
GROSS
PROFIT
DEPARTMENT A DEPARTMENT B TOTAL
$559,500
$440,500
$100,500
$101,000
Indirect costs incurred by Aday Hotels are as follows:
Indirect Expenses
Property Taxes $24,000
Marketing
$50,000
A
B
Here is a breakdown of the Square Footage of each
department:
Department
Select one:
SQ FT
60,000
40,000
$1,000,000
$201,500
Management has decided to distribute the Property Taxes
based on SQ FT % and the Marketing expenses will be
distributed based on the sales mix. Solve the following:
Cost of Goods Sold for Department A
a. $58,100
O b. $69,400
c. $127,500
d. $459,000
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