Exercise 23-9 (Algo) Segment elimination LO P4[The following information applies to the questions displayed below.]Suresh Company reports the following segment (department) income results for the year.Department M$ 87,000Department N Department 0$ 47,000Department P$ 69,000Department T$ 42,000Total$ 83,000$ 328,000SalesExpensesAvoidableUnavoidableTotal expenses18,80059,00077,800$ 9,20047,20023,40070,600$ (23,600)18,5006,00024,500$ 58,50023,00058,50081,500$ (12,500)54,00022,40076,400$ (34,400)161,500169,300330,800$ (2,800)Income (loss)Exercise 23-9 (Algo) Part 2b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.Total increase in income

An avoidable expense is one which will not be incurred if a particular behavior is avoided. In…

Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department I $ 42,000 Total Department M DepartmentN Department 0 Department P $ 87,000 $ 47,000 $ 83,000 $ 69,000 $ 328,000 Sales Expenses Avoidable 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) 54,000 22,400 76,400 $ (34,400) 161,500 169,300 330,800 $ (2,800) Unavoidable Total expenses Income (loss) rcise 23-9 (Algo) Part 2 ompute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated

Exercise 23-9 (Algo) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Department I $ 42,000 Total Department M DepartmentN Department 0 Department P $ 87,000 $ 47,000 $ 83,000 $ 69,000 $ 328,000 Sales Expenses Avoidable 18,800 59,000 77,800 $ 9,200 47,200 23,400 70,600 $ (23,600) 18,500 6,000 24,500 $ 58,500 23,000 58,500 81,500 $ (12,500) 54,000 22,400 76,400 $ (34,400) 161,500 169,300 330,800 $ (2,800) Unavoidable Total expenses Income (loss) rcise 23-9 (Algo) Part 2 ompute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated

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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Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0
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