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Exercise 24-5 Service department expenses allocated to operating departments Advertising and purchasing department expenses of...

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Accounting

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Exercise 24-5 Service department expenses allocated to operating departments 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 $38,900 and the advertising department had total expenses of $38,900. Information about the allocation bases for the three operating departments follows. Department Sales Purchase Orders Books 180,000 984 108,000 Magazines 600 72,000 Newspapers 816 Total $360,000 2,400

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