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MC Qu
MC Qu. 143 What is the total amount of the costs listed... The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.
Corporate headquarters building lease $98,000
Cosmetics department sales commissions -- Northridge Store $7,000
Corporate legal office salaries $59,000
Store manager's salary -- Northridge Store $12,000
Heating- Northridge Store $13,000
Cosmetics department cost of sales -- Northridge Store $33,000
Central warehouse lease cost $8,000
Store security-Northridge Store $15,000
Cosmetics department manager's salary -- Northridge Store $6,000
The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.
What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?
Expert Solution
The calculation of the total amount of the cosmetic department is:
| Details | Amount |
| Cosmetic Department sales commissions --Northridge Store Cosmetics Department cost of sales --Northridge Store Cosmetics Department manager's salary --Northridge Store |
$ 7,000 $ 33,000 $ 6,000 |
| Total | $ 46,000 |
The total amount of the cosmetic department is $ 46,000
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