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Chapter 24, Problem 3E
Exercise 24-3
Service department expenses allocated to operating departments P2
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
Advertising and purchasing department expenses 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.
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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.
2. The following is a partially completed lower section of a departmental expense allocation for
Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five
departments. Allocate the expenses of the two service departments (advertising and purchasing)
to the three operating departments and provide the complete income statement.
Allocatlon of Expenses to Departments
Еxpense
Account Bal.
Advertising
Dept.
Purchasing
Dept.
Books
Magazines
Dept.
Newspapers
Dept.
Allocation Base
Dept.
$698,000
$24,000
$34,000
$425,000
$90,000
$125,000
Total department expenses..
Service department expenses
Advertising department.
Purchasing department.
Total expenses allocated to
operating departments..
Sales
?
.Purch, orders
Advertising and purchasing department expenses 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…
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
Sales
Purchase Orders
Books
$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.
Complete this question by entering your answers in the tabs below.
Allocation of
Alloc of Serv
Exp
Dept
Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the
three operating departments. (Amounts to be deducted should be indicated with minus sign.)
COZY BOOKSTORE
Departmental Expense Allocation Spreadsheet
Expense Totals Advertising Purchasing
Books
Magazines…
Chapter 24 Solutions
FUND.ACCT.PRIN -ONLINE ONLY >I<
Ch. 24 - Prob. 1DQCh. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQCh. 24 - Prob. 10DQ
Ch. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 19DQCh. 24 - Prob. 20DQCh. 24 - Prob. 1QSCh. 24 - Prob. 2QSCh. 24 - Prob. 3QSCh. 24 - Allocation and measurement terms C1 In each blank...Ch. 24 - Basis for cost allocation C1 For each of the...Ch. 24 - Prob. 6QSCh. 24 - Prob. 7QSCh. 24 - Prob. 8QSCh. 24 - Prob. 9QSCh. 24 - Prob. 10QSCh. 24 - Prob. 11QSCh. 24 - Prob. 12QSCh. 24 - Prob. 13QSCh. 24 - Prob. 14QSCh. 24 - Prob. 15QSCh. 24 - Prob. 16QSCh. 24 - Prob. 17QSCh. 24 - Prob. 18QSCh. 24 - Prob. 19QSCh. 24 - Prob. 1ECh. 24 - Prob. 2ECh. 24 - Exercise 24-3 Service department expenses...Ch. 24 - Prob. 4ECh. 24 - Prob. 5ECh. 24 - Prob. 6ECh. 24 - Prob. 7ECh. 24 - Prob. 8ECh. 24 - Prob. 9ECh. 24 - Prob. 10ECh. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Prob. 13ECh. 24 - Prob. 14ECh. 24 - Prob. 15ECh. 24 - Prob. 16ECh. 24 - Prob. 17ECh. 24 - Prob. 18ECh. 24 - Prob. 19ECh. 24 - Prob. 20ECh. 24 - Prob. 21ECh. 24 - Problem WA
Responsibility according perfortmance...Ch. 24 - Prob. 2APSACh. 24 - Prob. 3APSACh. 24 - Problem 24-4A Departmental contribution to income...Ch. 24 - Prob. 5APSACh. 24 - Prob. 1BPSBCh. 24 - Prob. 2BPSBCh. 24 - Prob. 3BPSBCh. 24 - Prob. 4BPSBCh. 24 - Prob. 5BPSBCh. 24 - Prob. 24SPCh. 24 - Prob. 1BTNCh. 24 - Prob. 2BTNCh. 24 - Prob. 3BTNCh. 24 - Prob. 4BTNCh. 24 - Prob. 5BTNCh. 24 - Prob. 6BTNCh. 24 - Prob. 7BTNCh. 24 - Prob. 8BTNCh. 24 - Prob. 9BTN
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