The managerial accountant at the Williamsburg Outlet Shoppe reported the following stand-alone costs:

Required:
Use the two stand-alone costs to allocate the common cost of $140,000,000 in millions for the Williamsburg Outlet Shoppe using the stand-alone cost-allocation method.

Question

The managerial accountant at the Williamsburg Outlet Shoppe reported the following stand-alone costs:

Required:
Use the two stand-alone costs to allocate the common cost of $140,000,000 in millions for the Williamsburg Outlet Shoppe using the stand-alone cost-allocation method.

Quizplus · Accepted Answer

D)[($130,000,000 / $130,000,000 + $70,000,000)
= [($130,000,000 / $200,000,000)]
= .65
[(.65 × $140,000,000)] = $91 million

The Managerial Accountant at the Williamsburg Outlet Shoppe Reported the Following