Alain Books and Café Product Line InformaTon
I have an assignment for accounting course.
Please refer to the attached file.
Assignment Assignment InformaTon Alain Bookshop and Café (ABC) is a large city bookstore that sells books and music CDs and has a café. ABC operates at capacity and allocates selling, general and administraTon costs to each product line using the cost of merchandise of each product line. ABC wants to opTmize the pricing and cost management of each product line. ABC is wondering if its accounTng system is providing it with the best informaTon for making such decisions. Alain Books and Café Product Line InformaTon For the Year Ended December 31, 2014 Books CDs Café Revenues $3,720,480 $2,315,360 $736,216 Cost of merchandise $2,656,727 $1,722,311 $556,685 Cost of café cleaning $18,250 Number of purchase orders placed 2,800 2,500 2,000 Number of deliveries received 1,400 1,700 1,600 Hours of shelf stocking Tme 15,000 14,000 10,000 Items sold 124,016 115,768 368,108 ABC incurs the following selling, general and administraTon costs: Alain Books and Café Selling, General, and AdministraTon Costs For the Year Ended December 31, 2014 Purchasing department expenses $474,500 Receiving department expense $432,400 Shell stocking labour expense $487,500 Customer support expense (cashiers and Foor employees) $91,184 $1,485,584 Required 1. Prepare product line and total company income statements, assuming that ABC uses cost of merchandise to allocate all selling, general and administraTon costs. 2. IdenTfy and explain an improved method for allocaTng each of the selling, general and administraTon costs to the three product lines. 3. Prepare product line and total company income statements, using the method you have idenT±ed in 2. above to allocate all selling, general and administraTon costs. 4. Compare your results in 3 above with those in 1 Above.
Answers
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Posted 19 Dec 2017 10:12 AM
My Price 10.00
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