GG Merchandising has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, P300,000); (P2, P200,000); (S1, P100,000; S2-25%, P1- 50%, P2-25%); (S2, P40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P1 if the costs of service departments are allocated using the algebraic method?
GG Merchandising has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, P300,000); (P2, P200,000); (S1, P100,000; S2-25%, P1- 50%, P2-25%); (S2, P40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P1 if the costs of service departments are allocated using the algebraic method?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1E: Yo-Down Inc. produces yogurt. Information related to the companys yogurt production follows: Support...
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