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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 S1 S2 S1 S1 S2 P1 P2 20% $170,000 68,000 54,000 140,000 To S2 P1 20% 30% ? - P2 ?% The direct operating costs of the departments (including both variable and fixed costs) are: 40 Required: 1. Determine the total cost of P1 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.

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 S1 S2 S1 S1 S2 P1 P2 20% $170,000 68,000 54,000 140,000 To S2 P1 20% 30% ? - P2 ?% The direct operating costs of the departments (including both variable and fixed costs) are: 40 Required: 1. Determine the total cost of P1 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.

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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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 is: From S1 S2 S1 20% S2 20% To P1 30% ? P2 Required 1 Required 2 Production department 1 Production department 2 ?% The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 170,000 S2 68,000 P1 54,000 P2 140,000 40 Required: 1. Determine the total cost of P1 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 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated < Required 1 Required 2 >
Transcribed Image Text: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 is: From S1 S2 S1 20% S2 20% To P1 30% ? P2 Required 1 Required 2 Production department 1 Production department 2 ?% The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 170,000 S2 68,000 P1 54,000 P2 140,000 40 Required: 1. Determine the total cost of P1 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 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated < Required 1 Required 2 >
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