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Brock Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative.
The adjusted trial balance at December 31, 1989 included the following expense and loss accounts:
One-half of the rented premises is occupied by the sales department. Brock's total selling expenses for 1989 are:
Suggested Answer: A
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Note: Only one-half of rent for office space was used for sales office.
Choice 'a' is correct. $480,000.
29 comments · newest first
MI
Mitsue
6 months ago
I agree with B) $400,000. It feels balanced with other expenses.
BE
Berry
6 months ago
I lean towards A) $480,000. The rent adds up quickly.
QU
Quentin
6 months ago
D) $360,000 is too low. Selling expenses should be higher.
OL
Olene
7 months ago
I feel like B) $400,000 makes sense. The expenses seem lower.
EL
Elmer
7 months ago
Half the rent for sales? That’s a smart way to split costs!
TR
Truman
7 months ago
Wait, how do we know the total selling expenses? Seems off.
MI
Mitzie
8 months ago
Not so sure about that, I lean towards B) $400,000.
ES
Estrella
8 months ago
I think it's definitely A) $480,000.
CA
Carla
8 months ago
Selling expenses are usually a big part of the budget.
NI
Nicholle
8 months ago
This question is a real head-scratcher. I'll go with the funniest option, C.
DE
Dewitt
8 months ago
I'm torn between B and D. Decisions, decisions...
AL
Alisha
8 months ago
C is the way to go, no doubt about it.
AD
Adaline
9 months ago
Option D looks good to me. Gotta love those selling expenses!
FL
Floyd
9 months ago
I feel like the answer might be around $400,000, but I need to double-check how we allocate the rent for the sales department.
JO
Joanne
9 months ago
I'm a bit unsure about how to split the rent. Did we include the rent in the selling expenses or just the direct costs?
GA
Gayla
9 months ago
I remember we did a similar question about allocating expenses based on department usage. I think I need to calculate the selling expenses carefully.
GE
Gerald
9 months ago
This seems pretty straightforward. I'm going to focus on accurately splitting the rent and utilities, since that's the key to getting the right answer. Once I have that, the rest should be pretty straightforward.
CA
Caren
9 months ago
Okay, I think I've got a plan. I'll start by calculating the total rent and utilities expenses, then split them 50/50 between selling and general/administrative. From there, I can add up the other selling expenses to get the final total.
AR
Aron
10 months ago
Hmm, this seems straightforward. I'll go with option B.
OZ
Ozell
10 months ago
I think it's A) $480,000. The sales department uses half the space.
FE
Felicitas
10 months ago
C) $370,000 could be right. Need to consider all costs.
DA
Dana
10 months ago
I think the total selling expenses should include all the selling-related costs, but I can't recall if we add half of the rent or just the direct selling expenses.
DE
Desmond
11 months ago
Hmm, I'm a bit confused about how to approach this. Do I need to calculate the total expenses first, then allocate the rent and utilities? Or should I start by splitting those two items?
CA
Carole
11 months ago
This looks like a straightforward allocation problem. I'll need to figure out how to split the rent and utilities expenses between selling and general/administrative based on the information provided.
FE
Felix
5 months ago
I’m thinking B might be the right choice after the calculations.
GA
Gail
6 months ago
So, are we leaning towards option A or B?
FR
Francoise
6 months ago
Yes, definitely! That will impact the total selling expenses.
JU
Justine
6 months ago
Good point! Utilities too, right?
AL
Alberto
10 months ago
I think we should allocate half of the rent to selling expenses.