Allocate the service department costs to the two operating departments using the reciprocal method.

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Answer 1

Question

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

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Answer 2

Question

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

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Answer 3

Question

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

Answer 6

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

Answer 7

Chapter 11, Problem 60P

a.

To determine

Allocate the service department costs to the two operating departments using the reciprocal method.

Answer 8

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

Answer 9

b.

To determine

Allocate the service department costs to the two operating departments using the step method.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Why do companies allocate costs? What are some of...Ch. 11 - What are the three methods of allocating service...Ch. 11 - What are the similarities and differences among...Ch. 11 - What criterion should be used to determine the...Ch. 11 - What is a limitation of the direct method of...Ch. 11 - What is a limitation of the step method of...Ch. 11 - Prob. 7RQ Ch. 11 - Why would a number of accountants express a...Ch. 11 - Prob. 9RQ Ch. 11 - What is the basic difference between the...

Allocate the service department costs to the two operating departments using the reciprocal method.

Solution Summary: The author calculates the cost allocation to the service departments using the reciprocal method.

Allocate the service department costs to the two operating departments using the reciprocal method.

Allocate the service department costs to the two operating departments using the step method.

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Chapter 11 Solutions