The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments D P20,000 A P80,000 B P60,000 Direct costs P15,000 Proportion of service by A to: 10% 60% B D 30% Proportion of service by B to: A 30% 20% D 50% 5. Using the algebraic method, department A's cost allocated to department C is: a. P48,000 b. P58,800 с. Р60,619 d. P98,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
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6. .Using the algebraic method, department B's cost allocated to department C is:
а. Р 7,794
b. P13,192
c. P14,021
d. P29,021
Transcribed Image Text:6. .Using the algebraic method, department B's cost allocated to department C is: а. Р 7,794 b. P13,192 c. P14,021 d. P29,021
The following information relates to Fay Corporation for the past accounting period.
Producing Departments Service Departments
B
P60,000
A
P80,000
Direct costs
P15,000
P20,000
Proportion of service by A to:
10%
B
60%
D
30%
Proportion of service by B to:
30%
20%
A
C
D
50%
5. Using the algebraic method, department A's cost allocated to department C is:
a. P48,000
b. P58,800
с. Р60,619
d. P98,000
Transcribed Image Text:The following information relates to Fay Corporation for the past accounting period. Producing Departments Service Departments B P60,000 A P80,000 Direct costs P15,000 P20,000 Proportion of service by A to: 10% B 60% D 30% Proportion of service by B to: 30% 20% A C D 50% 5. Using the algebraic method, department A's cost allocated to department C is: a. P48,000 b. P58,800 с. Р60,619 d. P98,000
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