Roger Owns an Electronics Store $\begin{array}{lr}\text { Audio } & \$ 16,400 \\\text { Video } & 20,500 \\\text { Computers } & 45,100\end{array}$

question 7

Essay

Roger owns an electronics store. He has divided his store into three departments. Net sales for the month of September are as follows: $\begin{array}{lr}\text { Audio } & \$ 16,400 \\\text { Video } & 20,500 \\\text { Computers } & 45,100\end{array}$ Advertising expense for September was $36,000.
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Required:
Allocate the advertising expense among the three departments on the basis of relative net sales.

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Definitions:

Cost Reconciliation Report

A financial document summarizing the cost elements of a production process, including materials, labor, and overhead, to reconcile any variances between expected and actual costs.

Work In Process Inventory

Goods that are in various stages of production within a factory but are not yet completed.

Transferred Out

In cost accounting, it refers to the costs associated with products or goods that have been moved from one production process to another.

Weighted-Average Process

A costing method used in manufacturing, blending the costs of all units produced in a period, regardless of when they were started or finished.