Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 2

PROBLEM DATA
Ottawa Scuba Supply, Inc., has divided its operations into two departments: Supplies, devoted to selling scuba tanks and supplies; and Apparel, devoted to selling sports clothing and underwater apparel. Departmental expense accounts are kept for direct expenses, but indirect (common) expenses are not allocated until the end of the accounting period. Selected data at June 30, the end of the current fiscal year, are as follows:

The bases for allocating indirect expenses are as follows:

REQUIREMENT
Open the file DEPT from the website for this book at cengagebrain.com. Enter the formulas where indicated on the worksheet. As a hint, FORMULA1 is =(B20/D20)*B8. The cells that contain zeros now have been preprogrammed. They will change to nonzero values as the formulas are entered. Enter your name in cell A1. Save your file as DEPT2. Print the worksheet when done. Also print your formulas. Check figure: Operating income, Supplies department (cell C47), $68,076.