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 To S1 S2 P1 P2 S1 — 20% 30% ?% S2 20% — ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 255,000 S2 85,000 P1 69,000 P2 215,000 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. QUESTION 2. Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $185,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 16,500 $ 14,300 $ 225,000 N 10,500 15,800 205,000 T 11,500 7,900 38,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.)
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 To S1 S2 P1 P2 S1 — 20% 30% ?% S2 20% — ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 255,000 S2 85,000 P1 69,000 P2 215,000 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. QUESTION 2. Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $185,000: Product Units Produced and Sold After Split-Off Total Separable Costs Total Final Sales Value M 16,500 $ 14,300 $ 225,000 N 10,500 15,800 205,000 T 11,500 7,900 38,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 | To | |||
|---|---|---|---|---|
| S1 | S2 | P1 | P2 | |
| S1 | — | 20% | 30% | ?% |
| S2 | 20% | — | ? | 40 |
The direct operating costs of the departments (including both variable and fixed costs) are:
| S1 | $ 255,000 |
|---|---|
| S2 | 85,000 |
| P1 | 69,000 |
| P2 | 215,000 |
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.
QUESTION 2.
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $185,000:
| Product | Units Produced and Sold | After Split-Off | |
|---|---|---|---|
| Total Separable Costs | Total Final Sales Value | ||
| M | 16,500 | $ 14,300 | $ 225,000 |
| N | 10,500 | 15,800 | 205,000 |
| T | 11,500 | 7,900 | 38,000 |
Required:
How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.)
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