Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) Activity and selected costs for three production departments (Training. Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow Supplying Department Accounting Facilities Direct cost From: Service department costs Accounting Facilities Total allocations Accounting Direct costs Total costs 0.20 $ 190,000 Accounting Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. S Facilities 0.40 $ 184,500 S OS Using Department Training 0$ 0.30 0.20 $ 330,000 Facilities Independent 0.20 0.20 $ 201,000 Cost Allocation To: Training 0 $ 0 $ Commercial 0.10 0.40 $ 287,000 Independent 0 $ 0 $ 0$ 0 $ Commercial

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Am. 294.

Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1)
Activity and selected costs for three production departments (Training. Independent, and Commercial) and two service departments
(Accounting and Facilities) at DuBay Films for the past month follow:
Supplying Department
Accounting
Facilities
Direct cost
From:
Service department costs
Accounting
Facilities
Total allocations
Accounting
0.20
$ 190,000
Direct costs
Total costs
Accounting
Required:
Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of
Training, Independent, and Commercial after this allocation?
Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final
answers to the nearest whole dollar amounts.
$
Facilities
0.40
e
$ 184,500
$
0 S
Using Department
Training
0 $
0.30
0.20
$ 330,000
Facilities
Independent
0.20
0.20
$ 201,000
Cost Allocation To:
Training
0 $
0 $
0 $
Commercial
0.10
0.40
$ 287,000
0 $
Independent
0 $
0 $
Commercial
0
0
Transcribed Image Text:Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) Activity and selected costs for three production departments (Training. Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Accounting Facilities Direct cost From: Service department costs Accounting Facilities Total allocations Accounting 0.20 $ 190,000 Direct costs Total costs Accounting Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. $ Facilities 0.40 e $ 184,500 $ 0 S Using Department Training 0 $ 0.30 0.20 $ 330,000 Facilities Independent 0.20 0.20 $ 201,000 Cost Allocation To: Training 0 $ 0 $ 0 $ Commercial 0.10 0.40 $ 287,000 0 $ Independent 0 $ 0 $ Commercial 0 0
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