●●Suppose the expenses of two production departments A andB and two service departments X and Y are as under:DepartmentAmount ()Apportionment BasisDept.-XDept.-YDept.-ADept.-B2,00,0001,50,0003,00,0003,20,000Y25%A40%40%B35%60%PREPARE a statement apportioning the costs of servicedepartments over the production departments using stepmethod.

Meaning of step down cost allocation method In this method amount of service department are…

Answered: PREPARE a statement apportioning the…

Business

Accounting

PREPARE a statement apportioning the costs of service departments over the production departments using step method.

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

●
●
Suppose the expenses of two production departments A and
B and two service departments X and Y are as under:
Department
Amount ()
Apportionment Basis
Dept.-X
Dept.-Y
Dept.-A
Dept.-B
2,00,000
1,50,000
3,00,000
3,20,000
Y
25%
A
40%
40%
B
35%
60%
PREPARE a statement apportioning the costs of service
departments over the production departments using step
method.

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