2. The following is a partially completed lower section of a departmental expense allocation forCozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its fivedepartments. 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 DepartmentsЕxpenseAccount Bal.AdvertisingDept.PurchasingDept.BooksMagazinesDept.NewspapersDept.Allocation BaseDept.$698,000$24,000$34,000$425,000$90,000$125,000Total department expenses..Service department expensesAdvertising department.Purchasing department.Total expenses allocated tooperating departments..Sales?.Purch, ordersAdvertising and purchasing department expenses are allocated to operating departmentson the basis of dollar sales and purchase orders, respectively. Information about theallocation bases for the three operating departments follows.DepartmentSalesPurchase OrdersBooks ...$495,000516Magazines....198,000360Newspapers207,000324Total.....$900,0001,200

In the given scenario there are two service departments and three operating departments within a…

Answered: 2. The following is a partiall. Cozy…

2. The following is a partiall. Cozy Bookstore. It reports departments. Allocate the to the three operating depa Allocation Base

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 8SPA: INCOME STATE MENT WITH DEPARTMENTAL OPERATING INCOME AND TOTAL OPERATING INCOME Alexa Cole owns a...

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Based on the partial trial balance below, prepare the Statement of Income (SCI) with supporting notes to the financial statements Make sure that the Statement of Income has the following: Net Purchases- X,XXX,XXX. Total Gross Income- X,XXX,XXX. Total Marketing and Selling Expenses- XXX,XXX. Total General and Administrative Expenses- XXX,XXX. Total Manufaturing Cost - X,XXX,XXX. Total Cost of Goods Sold- X,XXX,XXX. Total Cost of Goods Manufactured- X,XXX,XXX. Total Factory Overhead- X,XXX,XXX Net Income After Tax- XXX,XXX.
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CASE 2. MODALITY COMPANY The following describes the expenditure cycle manual procedures for MODALITY Company. The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department, and Copy 2 is filed. Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference file) and prepares a three part purchase order. Copy 1 is sent to the supplier, Copy 2 is sent to the accounts payable department where it is filed temporarily, and Copy 3 is filed in the purchases department. A few days aftr the supplier ships the order, the goods arrive at the receiving department. They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the receiving report accompanies the goods to the stores, where they are secured. Copy 2 is sent to…
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