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E. The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 80,000 45,000 78,000 99,000 45,000 .10 .30 .25 .20 .15 S2 .20 .40 .20 .20 S3 .60 .35 .05 P1 P2 P3

E. The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 80,000 45,000 78,000 99,000 45,000 .10 .30 .25 .20 .15 S2 .20 .40 .20 .20 S3 .60 .35 .05 P1 P2 P3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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just answer 29 and 30 based on the picture

E. The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 80,000 .10 .30 25 .20 .15 S2 .20 40 .20 .20 S3 45,000 78,000 99,000 .60 .35 .05 P1 P2 P3 45,000 23. What amount will be allocated by S1 to S2 under direct method? 24. What amount will be allocated by S2 to P2 under direct method? 25. How much is the total overhead costs in P3 after the allocation under direct method? 26. Under the step method which department will allocate its direct cost first? 27. Under the step method which department will allocate its direct cost last? 28. Using the algebraic method, how much is the total costs to be allocated by S1 to all departments? 29. Using algebraic method, how much is the cost to be allocated by S3 to S2? 30. What is the total cost to be allocated by the servicing departments to producing departments?
Transcribed Image Text:E. The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 80,000 .10 .30 25 .20 .15 S2 .20 40 .20 .20 S3 45,000 78,000 99,000 .60 .35 .05 P1 P2 P3 45,000 23. What amount will be allocated by S1 to S2 under direct method? 24. What amount will be allocated by S2 to P2 under direct method? 25. How much is the total overhead costs in P3 after the allocation under direct method? 26. Under the step method which department will allocate its direct cost first? 27. Under the step method which department will allocate its direct cost last? 28. Using the algebraic method, how much is the total costs to be allocated by S1 to all departments? 29. Using algebraic method, how much is the cost to be allocated by S3 to S2? 30. What is the total cost to be allocated by the servicing departments to producing departments?
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