5 of stion through the period. Normal spoilage is 6% of the good units that pass inspection. #of Units Units in beginning WIP Units started Units completed & transferred out Units in ending WIP Spoilage 3,300 Conversion cost is 20% complete 31,700 2,900 Conversion cost is 70% complete 2,400 Inspection occurs at the 35% completion stage. How many of the spoiled units are normal? Choose... O A company has 4 service departments (S1, S2, S3, and 54) and 2 producing departments (P1 and P2). The company uses the step-down method to allocate the service department costs to other service departments and the production departments. Base of Allocation $1 $2 $3 S4 P1 P2 Total 1,000 1,500 500 3,000 4,000 10,000 $1:# of hours 52: Square meters 250 150 300 200 1,200 $3: # of Orders 200 500 500 1,500 54: of transactions 2,000 1,800 5,000 300 140 160 400 600 200 - What is the order of allocating the service department costs? Choose... O
5 of stion through the period. Normal spoilage is 6% of the good units that pass inspection. #of Units Units in beginning WIP Units started Units completed & transferred out Units in ending WIP Spoilage 3,300 Conversion cost is 20% complete 31,700 2,900 Conversion cost is 70% complete 2,400 Inspection occurs at the 35% completion stage. How many of the spoiled units are normal? Choose... O A company has 4 service departments (S1, S2, S3, and 54) and 2 producing departments (P1 and P2). The company uses the step-down method to allocate the service department costs to other service departments and the production departments. Base of Allocation $1 $2 $3 S4 P1 P2 Total 1,000 1,500 500 3,000 4,000 10,000 $1:# of hours 52: Square meters 250 150 300 200 1,200 $3: # of Orders 200 500 500 1,500 54: of transactions 2,000 1,800 5,000 300 140 160 400 600 200 - What is the order of allocating the service department costs? Choose... O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A10

Transcribed Image Text:6
of
stion
through the period. Normal spoilage is 6% of the good units that pass inspection.
# of Units
Units in beginning WIP
Units started
Units completed & transferred
out
Units in ending WIP
Spoilage
3,300 Conversion cost is 20%
complete
S2: Square meters
$3: # of Orders
54: # of transactions
31,700
$1
?
2,900 Conversion cost is 70%
complete
Inspection occurs at the 35% completion stage. How many of the spoiled units are normal? Choose... #
2,400
A company has 4 service departments (51, 52, 53, and 54) and 2 producing departments (P1 and P2). The company uses the step-down method to allocate the service department
costs to other service departments and the production departments.
Base of Allocation
S2
$3
S4 P1
$1:# of hours
Total
1,000 1,500 500 3,000 4,000 10,000
250
1,200
300 200
500 500 1,500
2,000 1,800
5,000
300
140 160
-
400 600 200
150
200
What is the order of allocating the service department costs?
P2
Choose...
+
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