COST ACCOUNTING W/CONNECT
6th Edition
ISBN: 9781264022021
Author: LANEN
Publisher: MCG
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Textbook Question
Chapter 2, Problem 64P
Cost Allocation with Cost Flow Diagram
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 $180,000. Following are the operating results for the two stores for the year:
Required
- a. Allocate the cost of the central accounting department to the two stores based on:
- 1. Number of computers sold.
- 2. Store revenue.
- b. Draw a cost flow diagram to illustrate your answer to requirement (a), part (2).
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COST ACCOUNTING W/CONNECT
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