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the consumption of their services follows Departments (51 and 52) and two production departments (P1 and P2) Last year directly identified overhead costs were $160,000 for S1 and $700,000 for S2 Information on (Click the icon to view the consumption information) Requirements (a) Determine the service department costs allocated to the two production departments using the direct method (b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs (e) Determine the service department costs allocated to the two production departments using the reciprocal method

the consumption of their services follows Departments (51 and 52) and two production departments (P1 and P2) Last year directly identified overhead costs were $160,000 for S1 and $700,000 for S2 Information on (Click the icon to view the consumption information) Requirements (a) Determine the service department costs allocated to the two production departments using the direct method (b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs (e) Determine the service department costs allocated to the two production departments 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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Feng Company has two service departments ($1 and 52) and two production departments (P1 and P2) Last year, directly identified overhead costs were $160,000 for $1 and $700,000 for S2 Information on the consumption of their services follows FE(Click the icon to view the consumption information) Requirements (a) Determine the service department costs allocated to the two production departments using the direct method (b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs (e) Determine the service department costs allocated to the two production departments using the reciprocal method Requirement (a) Determine the service department costs allocated to the two production departments using the direct method. (Do not round rato calculations. Use parentheses or a minus sign when decreasing departments by allocating costs Complete all answer boxes) Service departments $1 Drect Method Costs Allocation of S1 costs Allocation of 52 costs Closing balance 32 Production departments P1 P2 Data table Supplying Departments $1 S2 St Print 0% 40% User Departments $2 30% 0% Done P1 21% 24% P2 - X 49% 36%
Transcribed Image Text:Feng Company has two service departments ($1 and 52) and two production departments (P1 and P2) Last year, directly identified overhead costs were $160,000 for $1 and $700,000 for S2 Information on the consumption of their services follows FE(Click the icon to view the consumption information) Requirements (a) Determine the service department costs allocated to the two production departments using the direct method (b) Determine the service department costs allocated to the two production departments using the sequential method beginning with the allocation of S1 department costs (e) Determine the service department costs allocated to the two production departments using the reciprocal method Requirement (a) Determine the service department costs allocated to the two production departments using the direct method. (Do not round rato calculations. Use parentheses or a minus sign when decreasing departments by allocating costs Complete all answer boxes) Service departments $1 Drect Method Costs Allocation of S1 costs Allocation of 52 costs Closing balance 32 Production departments P1 P2 Data table Supplying Departments $1 S2 St Print 0% 40% User Departments $2 30% 0% Done P1 21% 24% P2 - X 49% 36%
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