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    Денис Заславский
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    Indirect costs were allocated to departments A and B based on orders placed and units sold. Department A was allocated $8,800 for purchasing and $14,300 for distribution. Department B was allocated $11,000 for purchasing and $12,100 for distribution. The full costs for each department were calculated including cost of goods sold, commissions, and allocated indirect costs. Department A's full cost was $455,000 and income per product was $65,000. Department B's full cost was $456,060 and income per product was $5,940.

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    Indirect costs were allocated to departments A and B based on orders placed and units sold. Department A was allocated $8,800 for purchasing and $14,300 for distribution. Department B was allocated $11,000 for purchasing and $12,100 for distribution. The full costs for each department were calculated including cost of goods sold, commissions, and allocated indirect costs. Department A's full cost was $455,000 and income per product was $65,000. Department B's full cost was $456,060 and income per product was $5,940.

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    Co Co

    Uploaded by

    Денис Заславский
    Indirect costs were allocated to departments A and B based on orders placed and units sold. Department A was allocated $8,800 for purchasing and $14,300 for distribution. Department B was allocated $11,000 for purchasing and $12,100 for distribution. The full costs for each department were calculated including cost of goods sold, commissions, and allocated indirect costs. Department A's full cost was $455,000 and income per product was $65,000. Department B's full cost was $456,060 and income per product was $5,940.

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    of 2

    1 Allocation of indirect cost

    Purchasing Distribution
    Indirect cost 19800 26400
    Driver orders placed units sold
    NB of drivers 18 4800
    Cost/driver 1100 5.5
    Allocation to A 8800 14300
    Allocation to B 11000 12100

    2 Purchasing cost
    A B
    Purchase 400000 380000
    Indirect purchase cost 8800 11000
    Cost of goods purchased 408800 391000

    Inventory
    beginning inventory 300 for 49000 300 for 58650
    plus Entry (which is cost of good 2500 for 408800 2000 for 391000
    goods available 2800 for 457800 2300 for 449650
    average cost 163.5 195.5
    exit 425100 430100
    ending inventory 32700 19550

    3 Full cost
    A B
    COGS 2600 for 425100 2200 for 430100
    comission 15600 13860
    indirect dist cost 14300 12100 go back to 1st table with allocate
    Full cost 455000 456060
    2600 for 455000 2200 for 456060
    average cost 175 207.3
    Sales revenue 520000 462000
    Full cost 455000 456060
    Income per product 65000 5940
    back to 1st table with allocated cost

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