_29. Using algebraic method, how much is the cost to be allocated by S3 to S2? __________30. What is the total cost to be allocated by the servicing departments to producing departments?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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  1. The following information relates to Wal-Mart Corporation for the past accounting period

 

Cost           Direct

Center        Cost                                 Proportion of Services used by:

 

                                          S1           S2           S3           P1           P2           P3

 

S1           P120,000                          .10          .30          .25          .20          .15

S2              80,000               .20                                   .40          .20          .20

S3               45,000                                                      .60          .35          .05

P1               78,000

P2               99,000

P3               45,000

 

 

 

____28. Using the algebraic method, how much is the total costs to be allocated by                                   S1 to all departments?

__________29. Using algebraic method, how much is the cost to be allocated by S3 to S2?

__________30. What is the total cost to be allocated by the servicing departments to

producing departments?

 

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