Question

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 $241,000. Following are the operating results for the two stores for the year.

Sales revenue	$	2,003,400		$	2,766,600
Number of computers sold		2,337			1,763

  

a. Allocate the cost of the central accounting department to the two stores based on:

1. Number of computers sold.

2. Store revenue.

of computers sold. (Do not round intermediate calculations.)

	Main Street	Lakeland Mall	Total
Allocated accounting department cost

Answer 1