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Advertising department expenses of $75,000 and purchasing department expenses of $58,300 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	$	150,000		1,680
Magazines		84,000		945
Newspapers		66,000		875
Total	$	300,000		3,500

Complete the following table 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.) Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept 0 Magazines Dept 0 Newspapers Dept 0 Totals 0 Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Dept 0 Magazines Dept 0 Newspapers Dept 0 Totals 0

COZY BOOKSTORE Allocation of Expenses to Departments Allocation Base Expense Account Balance Advertising Dept. Purchasing Dept. Books Dept. Magazines Dept. Dept.Newspapers Dept. Total department expenses $833,000 $75,000 $58,300 $174,900 $166,600 $358,200 Advertising Dept. Sales Purchasing Dept. Purch. orders Total expenses allocated to operating depts. $833,000 $75,000 $58,300 $174,900 $166,600 $358,200

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