Chapter 2: Accounting for Departments – Part 2
• Treatment of general expenses which serving more than one department .
Direct Expenses/Department: Serving the department only
1. Salaries and wages of the department employee .
2. Rental of Hangar manufacturing department .
3. Head of the department salary .
General expenses which serving more than one department on an appropriate basis.
Example 1: (section sections three of consists Company Union s A, B and C) with the
following expenses:
1- Sales 30000, 20000, 10000 JD respectively.
2- Direct expenses 6000, 4000 and 2000 respectively.
3- Other expenses Common :
– 1200 Salaries & wages (divided by working hours).
– 2100 General Manager salary (divided equally).
– 3600 Depreciation of buildings (divided by area).
– 4200 Cleaning expenses (divided by area).
– 4800 Other general expenses (divided equally).
information additional :
– hours section: each of work The 1000, 2000 and 3000 hours for each section
respectively.
– Area: 50% 30% and 20% respectively.
