The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. 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?
A) $101,250
B) $49,550
C) $45,310
D) $39,700

Question

The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September.  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?
A) $101,250 
B) $49,550 
C) $45,310 
D) $39,700

Quizplus · Accepted Answer

The direct costs of the Cosmetics Department are the costs that are specific to that department, such as the cost of merchandise purchased for that department and the salaries of the department's employees. From the data given, the direct costs of the Cosmetics Department are:
- Merchandise purchases: $45,350
- Cosmetics department salaries: $4,200
So, the total direct costs of the Cosmetics Department are $45,350 + $4,200 = $49,550. Therefore, the best choice is B.

The Following Cost Data Pertain to the Operations of Quinonez