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?
A. 9,760 B. 9,400 C. 2,860 D. 2,500
Correct Answer: 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
