FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information is departmental cost allocation with two service departments and two production departments.
Percentage Service Provided to |
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Department | Cost | S1 | S2 | P1 | P2 | ||||||||||
Service 1 (S1) | $ | 40,000 | 0 | % | 40 | % | 30 | % | 30 | % | |||||
Service 2 (S2) | 30,000 | 25 | 0 | 45 | 30 | ||||||||||
Production 1 (P1) | 200,000 | ||||||||||||||
Production 2 (P2) | 250,000 | ||||||||||||||
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?
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