FINANCIAL ACCOUNTING
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

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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