Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance, Printing and Packaging. TJP treats first two as support departments and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $200,000 $1,400,000 $400,000 Head Count 8 15 40 20 Department Costs $250,000 $100,000 $1,500,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to Printing and packaging using: (scoring 5+10+10=25) Direct method HR Finance Printing Packaging Department costs 250,000 100,000 1,500,000 200,000 Allocation of HR department costs (40:20) -250,000 Allocation of Financial department costs 100,000 0 0 Sequential method assuming that HR is primary support department Reciprocal method

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance, Printing and Packaging. TJP treats first two as support departments
and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department
allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $200,000 $1,400,000 $400,000 Head
Count 8 15 40 20 Department Costs $250,000 $100,000 $1,500,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to
Printing and packaging using: (scoring 5+10+10=25) Direct method HR Finance Printing Packaging Department costs 250,000 100,000 1,500,000 200,000 Allocation of HR
department costs (40:20) -250,000 Allocation of Financial department costs 100,000 0 0 Sequential method assuming that HR is primary support department Reciprocal
method
Transcribed Image Text:Tom & Jerry Publishers (TJP) is a publisher for books for children. It has four departments viz. HR, Finance, Printing and Packaging. TJP treats first two as support departments and other two as production departments. The company uses Asset Value as a driver for finance department and employee Head Count as a driver for HR department allocation. Following is the data available with regards to April 20X1. Specifics HR Finance Printing Packaging Asset Value $150,000 $200,000 $1,400,000 $400,000 Head Count 8 15 40 20 Department Costs $250,000 $100,000 $1,500,000 $200,000 Calculate the final costs of all the four departments for the month of April after allocation to Printing and packaging using: (scoring 5+10+10=25) Direct method HR Finance Printing Packaging Department costs 250,000 100,000 1,500,000 200,000 Allocation of HR department costs (40:20) -250,000 Allocation of Financial department costs 100,000 0 0 Sequential method assuming that HR is primary support department Reciprocal method
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