Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution ofeach service department's efforts (in percentages) to the other departments is:FromS15252P120% 30%?The direct operating costs of the departments (including both variable and fixed costs) are:S1S1S2P1P2-20%$ 200,00073,00060,000170,000To2. Step method.3. Reciprocal method.Required: Determine the total cost (including direct operating costs) of P1 and P2 using the:1. Direct method.Required 1 Required 2P2Production department 1Production department 2?%Answer is not complete.Complete this question by entering your answers in the tabs below.40$$Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.)Total CostAllocatedRequired 3180,000 X184,600 x

The service department cost is allocated to different production departments using different methods…

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From $1 52 S1 20% The direct operating costs of the departments (including both variable and fixed costs) are: $ 200,000 73,000 60,000 170,000 S1 52 P1 P2 To 52 20% P1 30% ? 2. Step method. 3. Reciprocal method. P2 ?% 40 Required: Determine the total cost (including direct operating costs) of P1 and P2 using the: 1. Direct method.

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From $1 52 S1 20% The direct operating costs of the departments (including both variable and fixed costs) are: $ 200,000 73,000 60,000 170,000 S1 52 P1 P2 To 52 20% P1 30% ? 2. Step method. 3. Reciprocal method. P2 ?% 40 Required: Determine the total cost (including direct operating costs) of P1 and P2 using the: 1. Direct method.

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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Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From S1 S2 S1 S2 To P1 10% 20% ? 10% S1 S2 P1 P2 – P2 $225,000 75,000 62,000 180,000 ?% The direct operating costs of the departments (including both variable and fixed costs) are: 30 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.
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