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Question - Calico Company has two operating departments: Department A and Department B. Department A occupies 30% of the floor space of the company but accounts for 75% of the sales of the company. Department B occupies 70% of the floor space of the company but accounts for 25% of company sales. Cleaning expense (an indirect expense of the company), which consists primarily of vacuuming the carpet is $30,000 each year. How much cleaning expense should be allocated to Department B?
$0
$7,500
$9,000
$21,000
$22,500
$30,000
Journalize the adjusting entry for the inventory shrinkage for Three Turtles Company for the year ended August 31, 2008.
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