The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 32,000 0% 25% 30% 45% Service 2 (S2) 23,000 20 0 20 60 Production 1 (P1) 130,000 Production 2 (P2) 180,000 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?
The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 32,000 0% 25% 30% 45% Service 2 (S2) 23,000 20 0 20 60 Production 1 (P1) 130,000 Production 2 (P2) 180,000 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?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...
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The following information is departmental cost allocation with two service departments and two production departments.
| Department | Cost | Percentage Service Provided to | |||
|---|---|---|---|---|---|
| S1 | S2 | P1 | P2 | ||
| Service 1 (S1) | $ 32,000 | 0% | 25% | 30% | 45% |
| Service 2 (S2) | 23,000 | 20 | 0 | 20 | 60 |
| Production 1 (P1) | 130,000 | ||||
| Production 2 (P2) | 180,000 |
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?
The following information relates to a joint production process for three products, with a total joint production cost of $165,000. There are no separable
| Product | Sales Value at Split-Off | Units at Split-Off |
|---|---|---|
| 1 | $ 181,500 | 320 |
| 2 | 99,000 | 960 |
| 3 | 49,500 | 1,920 |
| $ 330,000 | 3,200 |
What percentage of joint cost is allocated to each of the three products using the sales value at split-off method?
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