Advertising department expenses of $71,000 and purchasing department expenses of $78,900 of Cozy Bookstore are allocated tooperating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for thethree operating departments follows.DepartmentSalesPurchase OrdersBooks$201,60092,400126,0001,225MagazinesNewspapers725550Total$420,0002,500Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the threeoperating departments.Complete this question by entering your answers in the tabs below.Allocation ofAlloc of ServExpDeptComplete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to thethree operating departments. (Amounts to be deducted should be indicated with minus sign.)COZY BOOKSTOREDepartmental Expense Allocation SpreadsheetExpense Totals Advertising PurchasingBooksMagazines NewspapersTotal department expenses2$789,0002$71,000 $ 78,900 $213,000$ 157,800$4268,300Service Dept. Expenses Complete this question by entering your answers in the tabs below.Allocation ofAlloc of ServExpDeptComplete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to thethree operating departments. (Amounts to be deducted should be indicated with minus sign.)COZY BOOKSTOREDepartmental Expense Allocation SpreadsheetExpense Totals Advertising PurchasingBooksMagazines NewspapersTotal department expenses789,0002471,000 $$78,900 $213,000 $ 157,800 $ 268,300Service Dept. ExpensesAdvertising Dept.Purchasing Dept.Total expenses allocated789,000$71,000$ 78,900 $ 213,000$ 157,800 $$ 268,300< Allocation of ExpAlloc of Serv Dept >%24%24

Formulas for the above table: Formulas for the above table:

Advertising department expenses of $71,000 and purchasing department expenses of $78,900 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 Books Sales Purchase Orders $201,600 92,400 126,000 1,225 Magazines Newspapers 725 550 Total $420,000 2,500 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Advertising department expenses of $71,000 and purchasing department expenses of $78,900 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 Books Sales Purchase Orders $201,600 92,400 126,000 1,225 Magazines Newspapers 725 550 Total $420,000 2,500 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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