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 $1 S2 S1 S2 S1 P1 P2 20% 52 20% $ 250,000 80,000 67,000 205,000 To The direct operating costs of the departments (including both variable and fixed costs) are: P1 • P2 30% ? ?% 48 Production department 1 Production department 2 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 1 Required 2 Required 3 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated

FINANCIAL ACCOUNTING
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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
S1
S1
S2
P1
P2
20%
$ 250,000
80,000
67,000
205,000
To
S2
20%
P1 • P2
30%
?
The direct operating costs of the departments (including both variable and fixed costs) are:
?%
48
Production department 1
Production department 2
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 1 Required 2
Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.)
Total Cost
Allocated
Required 3
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 S1 S1 S2 P1 P2 20% $ 250,000 80,000 67,000 205,000 To S2 20% P1 • P2 30% ? The direct operating costs of the departments (including both variable and fixed costs) are: ?% 48 Production department 1 Production department 2 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 1 Required 2 Determine the total cost of P1 and P2 using the direct method. (Do not round intermediate calculations.) Total Cost Allocated Required 3
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