Advertising and purchasing department expenses of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. The purchasing department had total expenses of $33,800 and the advertising department had total expenses of $54,100. Information about the allocation bases for the three operating departments follows.
Department Sales Purchase Orders
Books $ 143,500 1,440
Magazines 70,000 756
Newspapers 136,500 1,404

Total $ 350,000 3,600

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Posted on May 27, 2016Author TutorCategories Question, Questions