Robinson Products Company has two service departments (S1 and $2) and two production departments (P1 and P2) The distribution of each service department's efforts in percentages) to the other departments 1 From $1 52 To 51 52 P1 2011 30% H 201 P2 $2,000 130,000 7% 40 The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 175,000 52 65,000 PL P2 Required: 1. Determine the total cost of Pi and P2 using the direct method 2. Determine the total cost of Pi and P2 using the step method 3. Determine the total cost of Ps and P2 using the reciprocal method

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2) The distribution of
each service department's efforts (in percentages) to the other departments is
From
51
52
51
201
PL
P2
The direct operating costs of the departments (including both variable and fixed costs) are:
51 $ 175,000
52
To
52 P1 P2
20% 30% PA
40
65,000
52,000
130,000
Required:
1. Determine the total cost of Pi and P2 using the direct method
2. Determine the total cost of P1 and P2 using the step method.
3. Determine the total cost of P1 and P2 using the reciprocal method
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations)
Total Cost
Allocated
Production department 1
Production depanment2
Required 3
Required 2 >
Transcribed Image Text:Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2) The distribution of each service department's efforts (in percentages) to the other departments is From 51 52 51 201 PL P2 The direct operating costs of the departments (including both variable and fixed costs) are: 51 $ 175,000 52 To 52 P1 P2 20% 30% PA 40 65,000 52,000 130,000 Required: 1. Determine the total cost of Pi and P2 using the direct method 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations) Total Cost Allocated Production department 1 Production depanment2 Required 3 Required 2 >
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the total cost of P1 and P2 using the step method. (Do not round intermediate calculsions.)
Total Cost
Allocated
Production department 1
Production department 2
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 3
Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your final
answers to whole dollars.)
Production department 1
Production department 2
Total Cost
Allocated
< Required 1
<Required 2
Required 3 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the total cost of P1 and P2 using the step method. (Do not round intermediate calculsions.) Total Cost Allocated Production department 1 Production department 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 3 Determine the total cost of P1 and P2 using the reciprocal method. (Do not round intermediate calculations. Round your final answers to whole dollars.) Production department 1 Production department 2 Total Cost Allocated < Required 1 <Required 2 Required 3 >
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