Exercise 22-3 Service department expenses allocated to operating departments LO P2Advertising department expenses of $24,000 and purchasing department expenses of $34,000 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. DepartmentSales Purchase OrdersBooks$495,000 516 Magazines 198,000 360 Newspapers 207,000 324 Total$900,000 1,200 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below.Allocation ofAlloc of ServExpDeptComplete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.AdvertisingAllocation BasePercent of Allocation BaseCost to be AllocatedAllocated CostDepartmentNumeratorDenominator% of TotalBooksMagazinesNewspapersTotalsPurchasingAllocation BasePercent of Allocation BaseCost to be AllocatedAllocated CostDepartmentNumeratorDenominator% of TotalBooksMagazinesNewspapersTotals< Allocation of ExpAlloc of Serv Dept >

The allocation base for advertising department expenses is departmental sales and the allocation…

Answered: table by allocating the expenses of the…

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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Exercise 22-3 Service department expenses allocated to operating departments LO P2

Advertising department expenses of $24,000 and purchasing department expenses of $34,000 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	$	495,000		516
Magazines		198,000		360
Newspapers		207,000		324
Total	$	900,000		1,200

Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.