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 P1 S1 0% 20 S2 20% 0 P1 40% 20 at 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 S1 going first? P2 P2 40% 60

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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