Homework Help is Here – Start Your Trial Now!
Business
Accounting
Sourcing Sourcing Operations 10,000 The costs incurred in the plant are as follows: Departments Sourcing Operations Operations 20,000 Assembly Finishing Total Departmental Costs $ 192,000 250,000 428,000 273,000 $1,143,000 Assembly 40,000 60,000 Finishing 60,000 50,000

Sourcing Sourcing Operations 10,000 The costs incurred in the plant are as follows: Departments Sourcing Operations Operations 20,000 Assembly Finishing Total Departmental Costs $ 192,000 250,000 428,000 273,000 $1,143,000 Assembly 40,000 60,000 Finishing 60,000 50,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please answer without image
Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Departments Sourcing Operations Assembly Finishing Total Total Labor Bours Used by Departments Assembly 40,000 60,000 Sourcing 10,000 Sourcing Operations The costs incurred in the plant are as follows: a. Direct Method Assembly Finishing b. Step Method Operations 20,000 Assembly Finishing Reciprocal Method Departmental Costs $ 192,000 250,000 428,000 273,000 $1,143,000 Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Total Service Department Cost Allocated Finishing 60,000 50,000 Total Production Cost
Transcribed Image Text:Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Departments Sourcing Operations Assembly Finishing Total Total Labor Bours Used by Departments Assembly 40,000 60,000 Sourcing 10,000 Sourcing Operations The costs incurred in the plant are as follows: a. Direct Method Assembly Finishing b. Step Method Operations 20,000 Assembly Finishing Reciprocal Method Departmental Costs $ 192,000 250,000 428,000 273,000 $1,143,000 Required: 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? (For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Total Service Department Cost Allocated Finishing 60,000 50,000 Total Production Cost
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS