It is 10:15 central time here and I have been trying to figure out my homework all day. My homework is to find the allocation for each department. My first question is:
61. City Shoe's insurance expense for the year totaled $6,300 and is to be allocated on the basis of the book value of inventory and equipment in each department. Using the financial data given below, compute the amount allocated to each department.
Book value of inventory and equipment:
(1.) Women's Shoes, $79,800
(2.) Men's Shoes, $69,300
(3.) Children's Shoes, $60,900

ANSWERS:
1.
2.
3.
I know how to get the answer either with the allocated amount or the percentage. Having the expense amount, and the profit from each department, I can't figure out how to get the percentages that each department has to pay. I will either have 75% and 25% or 80 and 20, but there are three departments here and I don't know how to get the percentages. I have to have this done by 11:29 my time. If anyone is logged in here that can help me, I would really appreciate it!:mad:

Lucy -

OK this is how you do it...

Total Ins $6300
3 Departments... total $210,000
1) women's $79,800 = .38
2) men's $69,300 = .33
3) kid's $60,900 = .29

You get those percentages by dividing total dollars for each category by $210,000 each to get percentages, then multiply percentages by $6,300 to get portion for each department.

Good luck kid!

Thank you so much for your help! I have just now been able to log in to respond to your answer. I knew there was a way to get the percentage, I just couldn't figure it out! Thanks again SO very much! Very useful and helpful. I sure hope I completed my homework correctly...