Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (51, 52, and 53). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from 51 52 53 P1 P2 |SW|25% 50% 20% 10% 5 45 40 15 5 20 60 The direct operating costs of the service departments are as follows: $1$ 98,000 $2 187,000 53 36,000 Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments (Round calculations to the nearest dollar. Do not round until your final answers) Service Departments 52 51 Total costs $ Check 53 ous OUS 0 Producing Departments P1 P2 162,740 x 158,260 $

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Interdepartment Services: Direct Method
Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments.
Services provided Services Provided to
from
S1 S2 S3 P1 P2
-- 5% 25% 50% 20%
5 45 40
20 60
S1
S2
S3
The direct operating costs of the service departments are as follows:
S1 $ 98,000
S2 187,000
S3 36,000
Total costs
10%
Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.)
Service Departments
Producing Departments
P1
S2
0 $
P2
158,260 x
162,740 x $
Check
15 5
S1
S3
0
Transcribed Image Text:Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from S1 S2 S3 P1 P2 -- 5% 25% 50% 20% 5 45 40 20 60 S1 S2 S3 The direct operating costs of the service departments are as follows: S1 $ 98,000 S2 187,000 S3 36,000 Total costs 10% Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.) Service Departments Producing Departments P1 S2 0 $ P2 158,260 x 162,740 x $ Check 15 5 S1 S3 0
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