Question

apportion the following expenses on the basis of cost of goods sold ratio among the four departments A BC & D
sales A:200000, B:150000 , C:100000, D:450000
GP ratio : 20%on sale
expenses :salaries Rs. 6000
Rent&rates :Rs.1500
Insurance:RS.1300
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Answer 1

Answer:

200 is the correct answer

Answer 2

Answer:

A = 1333 + 333 + 289 = 1955

B = 1000 + 250 + 217 = 1467

C = 667 + 167 + 144 = 978

D = 3000 + 750 + 650 = 4400

Explanation:

calculation of Cost of Goods Sold for each department:-

A = 200000 - (20% of 200000) = 160000

B = 150000 - (20% of 150000) = 120000

C = 100000 - (20% of 100000) = 80000

D = 450000 - (20% of 450000) = 360000

Total Cost of Goods Sold value = 720000

Cost of Goods Sold Ratio of each department:-

A = 160 / 720

B = 120 / 720

C = 80 / 720

D = 360 / 720

Expenses of A = (6000 + 1500 + 1300) * (160 / 720) = 1955

Expenses of B = (6000 + 1500 + 1300) * (120 / 720) = 1467

Expenses of C = (6000 + 1500 + 1300) * (80 / 720) = 978

Expenses of D = (6000 + 1500 + 1300) * (360 / 720) = 4400