A retailer pays $120,000 rent each year for its two-story building. Space in this building is occupied by five departments as shownhere.DepartmentJewelryCosmeticsDepartmentHousewaresToolsShoesThe company allocates $78,000 of total rent expense to the first floor and $42,000 to the second floor. It then allocates rent expensefor each floor to the departments on that floor based on square feet occupied.First FloorJewelry DepartmentCosmetics DepartmentTotalsSquare feet occupied1,750 (first-floor)3,250 (first-floor)Determine the rent expense to be allocated to each department.Allocate these portions of total rent expense across the departments occupyingeach floor.Square FeetSecond FloorHousewares DepartmentSquare feet occupied2,200 (second-floor)950 (second-floor)1,850 (second-floor)Tools DepartmentShoes DepartmentTotalsSquare Feet00Percent of Total%%0%Percent of TotalCost Allocated$Cost Allocated%%%0% S00

Allocation of overheads is based on the the type of overhead costs and need to determine suitable…

A retailer pays $120,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes Square feet occupied 1,750 (first-floor) 3,250 (first-floor) Square feet occupied 2,200 (second-floor) 950 (second-floor) 1,850 (second-floor) The company allocates $78,000 of total rent expense to the first floor and $42,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department. Allocate these portions of total rent expense across the departments occupying each floor. First Floor Square Feet Jewelry Department Cosmetics Department Totals 0 Percent of Total % % 0% Cost Allocated S 0

A retailer pays $120,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes Square feet occupied 1,750 (first-floor) 3,250 (first-floor) Square feet occupied 2,200 (second-floor) 950 (second-floor) 1,850 (second-floor) The company allocates $78,000 of total rent expense to the first floor and $42,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department. Allocate these portions of total rent expense across the departments occupying each floor. First Floor Square Feet Jewelry Department Cosmetics Department Totals 0 Percent of Total % % 0% Cost Allocated S 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A retailer pays $150,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes First Floor Jewelry Department Cosmetics Department Totals The company allocates $97,500 of total rent expense to the first floor and $52,500 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department. Second Floor Housewares Department Square feet occupied 1,610 (first-floor) 2,990 (first-floor) Tools Department Shoes Department Totals Square feet occupied 2,070 (second-floor) 828 (second-floor 1,702 (second-floor) Square Feet 1.610 INN 2,990 14,600 Square Feet (1 2,070 828 1,702 14.600 Percent of Total % % HIIH 0% Percent of Total LLL % % % 0 % 201 Cost Allocated $ Cost Allocated 51 2012 277
Hi owns and operates three Compufix shops in Caloocan City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Caloocan City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400. What was the total cost of services for August?
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.
GIRLAND INC. consigned 4,800 medical equipment costing P90 and retailing for P3,000 each to ABA Co. Freight cost of P4,800 was paid as freight expenses by the consignor. After a month, GIRLAND received P213,030 in full settlement of the balance due. The consignor deducted a commission of P600 for each equipment sold, P270 for delivery expense and P300 for advertising expense. How many medical equipment were sold?
Dick's Draperies has gross sales $15,000 per month, half of which are on credit (paid with 30 days). Monthly expenses are as follows: wages, $3,000; utilities and rent, $2,000; advertising, $300; and miscellaneous, $500, inventory is purchased every three months and totals $30,000 for each order. Yearly expenses paid for in advance are insurance of $1,000 and a rent deposit of $700. Prepare a six-month cash flow statement for Dick's Draperies. What advice would you give this business based on the cash flow statement?
The Calling Company has three departments that occupy floor space in the 50,000 square feet building it rents for $500,000 annually. Department A occupies 25,000 sq ft; Department B occupies 10,000 sq ft; and Department C occupies 15,000 sq ft. How much annual rent expense should be allocated to Department B?
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
NAPAPALUNOK AKO AS OF THE MOMENT INC. sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year, and 50% in the third year. Service contracts sold are as follows. How much is the unearned revenue from service contracts as of December 31, 2019? Use the information given. How much is the unearned revenue from service contracts as of December 31, 2020? a. P4,657,125 b. P3,468,750 c. P2,475,000 d. P1,237,500
Ganja Motors is a small car dealership. On average, it sells a car for $54,000, which it purchases from the manufacturer for $46,000. Each month, Ganja Motors pays $96,400 in rent and utilities and $136,000 for salespeople’s salaries. In addition to their salaries, salespeople are paid a commission of $1200 for each car they sell. Ganja Motors also spends $26,000 each month for local advertisements. Its tax rate is 40%. How many cars must Ganja Motors sell each month to break even? Ganja Motors has a target monthly net income of $102,000. What is its target monthly operating income? How many cars must be sold each month to reach the target monthly net income of $102,000?
Ice Company pays $4 per unit for a minimum 2,000 units completed and $5 per unit in excess of 2,000 units. The guaranteed daily wages for 20 employees is $8,000. Daily production in units for the 1st week is as follows: Monday 2,300; Tuesday 2,450; Wednesday 1,900; Thursday 2,700; Friday 1,600; and Saturday 2,600. If Ice Company uses perpetual inventory system, what is the amount of indirect labor cost charged to factory overhead control? $4,050 $12,250 $10,250 None of the above
A retailer pays $130,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here.