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Jackson Company has two departments S1 and S2 and two producing department P1 and P2.

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Question;1)Jackson Company has two departments S1 and S2 and two producing department P1 and P2. Estimated direct costs and percentages of services used by other departments are as follows:Used by departmentSupport DeptS1S2P1P2S1---10%40%50%S220%--50%30%Overhead costs$450080001000015000Required:Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method. What are the total costs in the producing departments after the allocation to the nearest dollar?Prepare a schedule allocating the support department costs to the producing departments using the sequential (step) allocation method. What are the total costs in the producing departments after the allocation to the nearest dollar?Prepare a schedule allocating the support department costs to the producing departments using the reciprocal allocation method. What are the total costs in the producing department after the allocation to the nearest dollar?2)Yamaha Industries for the month ending December 31, 2013Sale $ 450,000Cost of goods sold 329,000Net income 22,000Beg inventories:Direct Material 70,000WIP 28,000Finish goods 90,000Ending direct materials is 10% smaller than beg direct materials. Ending WIP is 75% of the beg WIP. Ending finished goods increased by $ 15,000 during the year. Prime costs and conversion costs are 60% and 80% of total manufacturing costs added, respectively. No income taxes.Required:Prepare a statement of cost of goods manufactured, and a gross profit income statement for December.Calculate prime costs and conversion costs.

 

Paper#40334 | Written in 18-Jul-2015

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