Chat with AI
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 15
Cost Allocation with Cost Flow Diagram
Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a central accounting department. The cost of the accounting department for last year was $175,000. Following are the operating results for the two stores for the year.
Required
a. Allocate the cost of the central accounting department to the two stores based on:
(1) Number of computers sold.
(2) Store revenue.
b. Draw a cost flow diagram to illustrate your answer to requirement ( a ), part (2).
Coastal Computer operates two retail outlets in Oakview, one on Main Street and the other in Lakeland Mall. The stores share the use of a central accounting department. The cost of the accounting department for last year was $175,000. Following are the operating results for the two stores for the year.
Required
a. Allocate the cost of the central accounting department to the two stores based on:
(1) Number of computers sold.
(2) Store revenue.
b. Draw a cost flow diagram to illustrate your answer to requirement ( a ), part (2).
Explanation
Verified
Verified
b.
Cost flow diagram or flowchart this ...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
