Unformatted text preview: This is a cost allocation problem for a merchandising firm. Instead of allocating overhead costs, you must allocate period costs, but the process is the same. Just follow the procedures that are used in the two examples in the Product Costing Systems lectures. The two allocation procedures are also similar to the ones used in Extra Study Problem #1. Make sure that you understand the lecture examples and the study problem before you try to do this problem. ______________________________________________________ Family Supermarkets has decided to increase the size of its Minneapolis store. It wants information about the profitability of its individual product lines: meats, fresh produce, and packaged food. The following data is for the year 2006 for each product line: Meats Fresh Produce Packaged Foods Revenue $820,000 $825,000 $490,000 Cost of goods sold $620,000 $585,000 $370,000 purchase orders 241 311 130 hours of stocking shelves 197 2,010 1,112 items sold 301,000 460,000 108,000 The Company also provides the following information for the year 2006 for its three support activities:...
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This note was uploaded on 09/16/2009 for the course ACCT 230 taught by Professor Jacobs during the Spring '08 term at Michigan State University.
- Spring '08