Problem 10-57 (Algo) Activity-Based Reporting: Service Organization (LO 10-3, 4) Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $3,000,000. Information regarding resources for the year includes the following.    Resources Used Resources Supplied Marketing $ 217,000   $ 236,000   Depreciation   172,000     179,000   Training personnel   89,000     106,000   Energy   161,000     174,000   Short-term labor   410,000     610,000   Long-term labor   830,000     850,000   Administrative   143,000     160,000         In addition, ACS spent $86,000 on 480 repair verifications with a cost driver rate of $150.   Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.

Domestic

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Problem 7-3A (Part Level Submission) Thompson Industrial Products Inc. (TIPI) is a diversified industrial-cleaner processing company. The company’s Dargan plant produces two products: a table cleaner and a floor cleaner from a common set of chemical inputs (CDG). Each week, 900,000 ounces of chemical input are processed at a cost of $210,000 into 600,000 ounces of floor cleaner and 300,000 ounces of table cleaner. The floor cleaner has no market value until it is converted into a polish with the trade name FloorShine. The additional processing costs for this conversion amount to $240,000.FloorShine sells at $20 per 30-ounce bottle. The table cleaner can be sold for $17 per 25-ounce bottle. However, the table cleaner can be converted into two other products by adding 300,000 ounces of another compound (TCP) to the 300,000 ounces of table cleaner. This joint process will yield 300,000 ounces each of table stain remover (TSR) and table polish (TP). The additional processing costs for this…

am. 172.

A9

4

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