Compute the cost allocations to Dept. S and Dept. T under the reciprocal method: To T: S To S: S

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Goodfriend Corp. provides the following information:
Service
Service
Dept. Z
Dept. X
$1,000
$600
Costs to be allocated
Proportions of service
provided by Dept. X
Proportions of service
provided by Dept. Z
Compute the cost allocations
To S: S
.10
.20
Production
Dept. S
.20
.45
Production
Dept. T
to Dept. S and Dept. T under the reciprocal method:
To T: S
.60
.45
Transcribed Image Text:Goodfriend Corp. provides the following information: Service Service Dept. Z Dept. X $1,000 $600 Costs to be allocated Proportions of service provided by Dept. X Proportions of service provided by Dept. Z Compute the cost allocations To S: S .10 .20 Production Dept. S .20 .45 Production Dept. T to Dept. S and Dept. T under the reciprocal method: To T: S .60 .45
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