Use the information to answer questions
......................... Departments
........................... P Q R
Sales value............... N23,400
Selling expenses.......... 1,100 N1,400 N1,280
Administrative expenses...N1,400 N1,000 N1,020
Cost of sales............. N6,900.... N6,700 N5,500
Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.
Determine the total expenses of department P?
......................... Departments
........................... P Q R
Sales value............... N23,400
Selling expenses.......... 1,100 N1,400 N1,280
Administrative expenses...N1,400 N1,000 N1,020
Cost of sales............. N6,900.... N6,700 N5,500
Sales value of department Q doubles that of p, which is 1/3 of R. Depreciation which amounts to N1,800 is to be apportioned among the three departments in the ratio 3:5:7 respectively.
Determine the total expenses of department P?
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Correct Answer: Option C
Explanation:
Depreciation is considered an operating expense so it will be added to the expenses.
Total expense of P = Selling expenses +Â Â Administrative expenses +Â Â depreciation
1100 + 1400 + \(\frac{3}{15}\)Â x 1800Â
1100 + 1400 + 360Â = 2,860
Depreciation is considered an operating expense so it will be added to the expenses.
Total expense of P = Selling expenses +Â Â Administrative expenses +Â Â depreciation
1100 + 1400 + \(\frac{3}{15}\)Â x 1800Â
1100 + 1400 + 360Â = 2,860