Cost Allocation: Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department. To prepare : A table to allocate departmental expense.

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Answer 1

Question

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

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Answer 2

Question

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

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Answer 3

Question

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

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Answer 4

Question

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

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Answer 5

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

Answer 6

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

Answer 7

Chapter 9, Problem 3E

To determine

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Answer 8

Expert Solution & Answer

Explanation of Solution

MANAGERIAL ACCOUNTING FUND. W/CONNECT, Chapter 9, Problem 3E

Table(1)

Hence, total expense distributed among department is $698,000.

Working notes:

Calculation for advertising cost of book department,

Advertising cost of books department=( Sales of its department Total sales ×Total advertising cost ) = $495,000 $900,000 ×$24,000 =$13,200

Calculation for advertising cost of magazines department,

Advertising cost of magazines department=( Sales of its department Total sales ×Total advertising cost ) = $198,000 $900,000 ×$24,000 =$5,280

Calculation for advertising cost of newspapers department,

Advertising cost of newspapers department=( Sales of its department Total sales ×Total advertising cost ) = $207,000 $900,000 ×$24,000 =$5,520

Calculation for purchasing cost of books department,

Purchasing cost of books department=( Purchase order of books department Total purchase orders ×Purchasing cost ) = 516 1,200 ×$34,000 =$14,620

Calculation for purchasing cost of magazines department,

Purchasing cost of magazines department=( Purchase order of magazines department Total purchase orders ×Purchasing cost ) = 360 1,200 ×$34,000 =$10,200

Calculation for purchasing cost of newspapers department,

Purchasing cost of newspapers department=( Purchase order of newspapers department Total purchase orders ×Purchasing cost ) = 324 1,200 ×$34,000 =$9,180

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. 1MCQ Ch. 9 - Prob. 2MCQ Ch. 9 - Prob. 3MCQ Ch. 9 - Prob. 4MCQ Ch. 9 - 5. Using the data in question 4, Department X’s...Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - Prob. 5DQ

Cost Allocation: Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department. To prepare : A table to allocate departmental expense.

Concept explainers

Videos

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.

Explanation of Solution

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Chapter 9 Solutions

Cost Allocation: Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department. To prepare : A table to allocate departmental expense.

Concept explainers

Videos

Cost Allocation: Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department. To prepare: A table to allocate departmental expense.

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions

Cost Allocation:

Sometime a cost is incurred for a whole firm and not for a particular department. In this case cost allocation is used. It is a way through which a particular cost is assigned to the respective department.

To prepare: A table to allocate departmental expense.