Exercise 7-29 (Algo) Departmental Cost Allocation [LO 7-3] Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: To S1 S2 P1 20% 30% 20% The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 190,000 68,000 55,000 145,000 From 51 52 52 P1 P2 P2 7% 40 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method. 4 just need the reciprocal method, hank you!

Exercise 7-29 (Algo) Departmental Cost Allocation [LO 7-3] Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: To S1 S2 P1 20% 30% 20% The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 190,000 68,000 55,000 145,000 From 51 52 52 P1 P2 P2 7% 40 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method. 4 just need the reciprocal method, hank you!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Departmental Cost Allocation Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service depart- ment's efforts (in percentages) to the other departments is: To From S1 S2 P1 P2 S1 10% 20% ?% S2 10% 30 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $180,000 S2 60,000 P1 50,000 P2 120,000 Required 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method?
II. AJA Company has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Departments Operating Departments Y A В Direct Costs P150 P300 P5,000 P6,000 Services performed by Dept. A Services performed by Dept. B 40% 40% 20% 20% 70% 10% 1) If the company is using the direct method to allocate service department costs, the service department cost allocated to Department Y is: 2) Using the information in number 1, what is the total cost for Department X? 3) If the company is using the step-down to allocate service department costs and Department A costs are allocated first, the service department cost allocated to Department Y is? 4) Using the information in number 3, the total cost for Department X is? 5) If the reciprocal method is used, the service department cos allocated to department Y is?
Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0
1. The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 46,000 0% 20% 40% 40% Service 2 (S2) 36,000 25 0 30 45 Production 1 (P1) 260,000 Production 2 (P2) 310,000 a. What is the amount of service department cost allocated to P1 and P2 using the direct method? b. What is the total cost in P1 and P2 after allocation using the direct method? c. What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? d. What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $260,000 to $280,000?
Use the following information: Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 118,000 0% 45% 35% 20% Service 2 (S2) 50,000 20 0 20 60 Production 1 (P1) 405,000 Production 2 (P2) 276,000 Total $ 849,000 a. What percentage of S1’s costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) b. What percentage of S2’s costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) Question 2. The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 227,500 680 2 87,500 1,020 3 35,000 1,700 $ 350,000 3,400 a. What percentage of joint cost is allocated to each of the three products using the…
II. AJA Company has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Departments B P300 Operating Departments A Y Direct Costs P150 P5,000 P6,000 Services performed by Dept. A Services performed by Dept. B 40% 40% 20% 20% 70% 10% 1) If the company is using the direct method to allocate service department costs, the service department cost allocated to Department Y is: 2) Using the information in number 1, what is the total cost for Department X? 3) If the company is using the step-down to allocate service department costs and Department A costs are allocated first, the service department cost allocated to Department Y is? 4) Using the information in number 3, the total cost for Department X is? 5) If the reciprocal method is used, the service department cos allocated to department Y is?
Required Information [The following information applies to the questions displayed below.] Use the following information: P1 P2 Department Cost Service 1 (51) $115,000 Service 2 (52) 47,000 Production 1 375,000 (P1) Production 2 (P2) Total 246,000 $783,000 Percentage Service Provided to S1 0% S2 P1 P2 25% 30% 45% 20 60 20 0 What percentage of S1's costs is allocated to P1 and to P2 under the direct method? Service Department 1's Costs
Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Service Department Cost Allocation Total Cost Percentage Service Provided to P1 S1 0% 20 S2 20% 0 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? P1 40% 20 P2 P2 40% 60
Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Percentage Service Provided to S1 0% 20 S2 P1 20% 40% 20 0 P2 40% 60 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?