Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expensesare allocated to the two operating departments using different allocation bases. The following information is available for thecurrent period:Office ExpensesSalariesTotalAllocation BasisNumber of employees$ 40,000DepreciationAdvertising26,00060,000Cost of goods soldPercentage of total salesDepartmentNumber of employeesDrillingGrinding1,8002,700Sales$ 352,000528,000Cost of goods sold$ 110,200179,800Total4,500$ 880,000$ 290,000The amount of the advertising cost that should be allocated to Grinding for the current period is:

Step 1: Allocation of advertising costs to the grinding department.Advertising cost =…

Answered: Marks Corporation has two operating…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the curfent period: office Expenses Salaries Depreciation Advertising Item Number of employees Net sales Cost of goods sold Multiple Choice O The amount of the advertising cost that should be allocated to Grinding for the current period is: O O $24,400 $68.000 $36.600 $360.000 Total $46,000 27,000 61,000 $81,000. Allocation Basis Number of employees Cost of goods sold Net sales Drilling Grinding Total 1,200 1,800 3,000 $360,000 $540,000 $900,000 $114,000 $186,000 $300,000
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Allocation Basis Number of employees Office Expenses Salaries Total $ 31,000 Depreciation Advertising 21,000 41,000 Cost of goods sold Percentage of total sales Department Number of employees Drilling Grinding Total 800 1,200 2,000 $ 79,800 130,200 $ 210,000 The amount of depreciation that should be allocated to Grinding for the current period is: Sales $ 330,000 Cost of goods sold 495,000 $ 825,000
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 39,000 Allocation Basis Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Drilling Grinding Total 1,800 2,700 4,500 Sales $368,000 552,000 $ 920,000 Cost of goods sold $ 121,600 198,400 $ 320,000 The amount of salaries that should be allocated to Grinding for the current period is:
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,800 $368,000 $ 121,600 Grinding 2,700 552,000 198,400 Total 4,500 $920,000 $320,000 The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $27,200. $82,600. $40,800. $368,000. $86,200. A company produced 195 units of Product L and 182 units of Product M during the current period and incurred joint costs of $900. Product L sells for $8 per unit and Product M sells for $20 per unit. Compute the cost to be allocated to Product M for this…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $42,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 58,000 Net sales Item Drilling Grinding Total Number of employees 1,960 $344,500 $ 93,000 4,900 $848,000 $248,000 2,940 $503,500 $155,000 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office exApenses are alocated to the tavo opertng cene different allocatlon bases. The following Information is avallable for the current period: Office Expenses Salaries Total Allocation Basis Number of employees 44,000 Depreciation Advertising 21,000 Cost of goods Bold 44,000 Percentage of total sales Department Drilling Grinding Number of employees Sales Cost of goods sold 900 $ 350,000 $ 91,200 2,100 525,000 148,800 Total 3,000 $ 875,000 $ 240,000 The amount of depreciation that should be allocated to Drilling for the current period is: Multiple Choice $7,980. $13,020. $21,000. 8 of 25
The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Service department charges: Commercial Division $331,840 Commercial Division $45,250 Residential Division 163,310 Residential Division 28,290 Administrative expenses: Net sales: Commercial Division $60,330 Commercial Division $502,790 Residential Division 58,320 Residential Division 291,620 Prepare divisional income statements for DeSalvo Construction Company. JERSEY COAST CONSTRUCTION COMPANY Divisional Income Statements For the Year Ended June 30, 20Y8 Commercial Division Residential Division $ $ $ $ $ $ $ $
TB MC Qu. 09-92 (Algo) Marks Corporation has two operating... Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 31,000 Number of employees Depreciation 21,000 Cost of goods sold Advertising 41,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 800 $ 330,000 $ 79,800 Grinding 1,200 495,000 130, 200 Total 2,000 $ 825,000 $ 210,000 The amount of the advertising cost that should be allocated to Grinding for the current period is:
The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Service department charges: Commercial Division $422,110 Commercial Division $57,560 Residential Division 218,470 Residential Division 37,840 Administrative expenses: Net sales: Commercial Division $76,750 Commercial Division $639,560 Residential Division 78,030 Residential Division 390,130 Prepare divisional income statements for Jersey Coast Construction Company. Jersey Coast Construction CompanyDivisional Income StatementsFor the Year Ended June 30, 20Y8 Commercial Division Residential Division $Net sales $Net sales Cost of goods sold Cost of goods sold $Gross profit $Gross profit Administrative expenses Administrative expenses $Income from operations before service department charges $Income from operations before service department charges…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $37,200. $26,000.
The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Commercial Division $912,250 Residential Division 423,675 Administrative expenses: Commercial Division $149,800 Residential Division 128,625 Service department charges: Commercial Division $112,560 Residential Division 67,830 Sales: Commercial Division $1,354,500 Residential Division 743,780 Prepare divisional income statements for Jersey Coast Construction Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information available for the current period: Office Expenses Total Allocation Basis $ 50,000 Number of employees Cost of goods sold Salaries Depreciation Advertising 34,000 68,000 Net sales Item Drilling Grinding Total Number of employees 1,800 $388,000 $582,000 $970, 000 $140,600 $229,400 $370, 000 2,700 4,500 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Drilling for the current period is:

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