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Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the +production departments.

Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the +production departments.

Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter2: Introduction To Transaction Processing
Section: Chapter Questions
Problem 3P
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Question 3 Simplicity Ltd provides you with the following information for two support departments and two production department. Support departments provide services to each other and to the production departments. Payroll costs S1 % S2% Departments S1 $ 304,625 24% S2 $ 280,979 23% Departments P1 $449,798 51% 49% P2 $ 585,573 26% 100% 27% 100% Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the + production departments. Payroll costs S1 S2 Totals Departments S1 S2 $ 304,625 $ 280,979 Departments P1 P2 $449,798 $200411 $181158 $ 585,573 $104214 $99821 Total = $831367 Total =$789608 $1620975 Fill in the table below for the equations for the support departments using the reciprocal method (Note that you will need to rearrange the order so that they align with the column headings: Support Dept equation S1 S2 S1 S2 Dept original dollar amount
Transcribed Image Text:Question 3 Simplicity Ltd provides you with the following information for two support departments and two production department. Support departments provide services to each other and to the production departments. Payroll costs S1 % S2% Departments S1 $ 304,625 24% S2 $ 280,979 23% Departments P1 $449,798 51% 49% P2 $ 585,573 26% 100% 27% 100% Part A: Using the direct method, provide the amounts of support department costs allocated to the production departments and the totals for the + production departments. Payroll costs S1 S2 Totals Departments S1 S2 $ 304,625 $ 280,979 Departments P1 P2 $449,798 $200411 $181158 $ 585,573 $104214 $99821 Total = $831367 Total =$789608 $1620975 Fill in the table below for the equations for the support departments using the reciprocal method (Note that you will need to rearrange the order so that they align with the column headings: Support Dept equation S1 S2 S1 S2 Dept original dollar amount
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