The total office expense for the year at Daily Fashion was $90,000. Compute the amount to be…

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The total office expense for the year at Daily Fashion was $90,000. Compute the amount to be allocated to each department using total sales as the basis for the allocation.Credit salesWomen’s clothing……………..$700,000Men’s clothing…………………$260,000Total salesWomen’s clothing…………….$840,000Men’s clothing………………..$300,000Sales returns and allowancesWomen’s clothingCredit sales……………………..$7,000Cash sales…………………………$600Men’s clothingCredit sales……………………..$3,000Cash sales…………………………$600Book value of inventory and equipmentWomen’s clothing……………$150,000Men’s clothing…………………$50,000View Solution:
The total office expense for the year at Daily Fashion

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