Gie Merchandise has two producing and two service departments labeledP1, P2, S1 and S2, respectively. Direct costs for each department and theproportion of service costs used by the various departments are asfollows: (P1, P300,000); (P2, P200,000); (S1, P100,000; S2-25%, P1-50%,P2-25%); (S2, P40,000; S1-10%, P1-50%, P2-40%). What is the total costof P2 if the costs of service departments are allocated using the stepmethod (start with S1)?

Given that : Gie Merchandise have two producing unit and two service department Calculation of…

Gie Merchandise has two producing and two service departments labele P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as ollows: (P1, P300,000); (P2, P200,000); (S1, P100,000; S2-25%, P1-50%, P2-25%); (S2, P40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P2 if the costs of service departments are allocated using the step method (start with S1)?

Gie Merchandise has two producing and two service departments labele P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as ollows: (P1, P300,000); (P2, P200,000); (S1, P100,000; S2-25%, P1-50%, P2-25%); (S2, P40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P2 if the costs of service departments are allocated using the step method (start with S1)?

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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