Allocate the service department costs using the reciprocal method.
Q: Can anyone help me with this? I want to throughly understand the steps. Ive followed examples in the…
A: Maximum Child Tax Credit (Tax Rule 2023)Age upto 5 years = 2,000 for each qualifying child6 to 17…
Q: The following totals for the month of April were taken from the payroll register of Oriole Company.…
A: The business organizations enter the transactions into the journal for the purpose of keeping track…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: In order to increase sales revenue, the business entities permit a customer to pay for its products…
Q: Problem 3 To raise more liquidity, Randy Corp. factored $70,000 of its accounts receivable with Mock…
A: Accounts receivable are those people or organizations who owe money to the business entity because…
Q: Which of the following would not be used as a control account? a. Accounts receivable b.…
A: Control accountA Control account is an account that is a summary account for all the small or…
Q: The adjusted trial balance shows O A. amounts that may be out of balance. OB. account balances after…
A: Trial balance is the statement which is prepared to report the summary of account balances of all…
Q: Estimate the ending inventory using the retail inventory method. (Round Intermediate calculations to…
A: Retail method of inventory valuation is used to estimate store inventory, it measures the cost of…
Q: Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the…
A: Cost of goods manufactured means total cost of manufacturing being incurred in business. Beginning…
Q: LUZEHO438 Corporation produces and sells a single product. The information about their operation for…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Motors Corporation manufactures motors for det bakes. The company requires a manamum $30,000 cash…
A: A cash budget is a financial tool that helps individuals or businesses manage their cash inflows and…
Q: The receiving activities are: O a. unloading, checking for discrepancies and repacking O b.…
A: Receiving process is one activity related to warehouse. When goods are being reached or received in…
Q: The information below pertains to Sunland Company for 2026. Net income for the year 7% convertible…
A: For the shareholders of every company, company issue dividends. the earning per share can be…
Q: Bergo Bay's accounting system generated the following account balances on December 31. The company's…
A: A trial balance's main function is to confirm that the entries in a firm's accounting system are…
Q: 4. Gary and Gardo are combining their separate business to form a partnership. Cash and non- cash…
A: A partnership is a sort of business organization in which two or more individuals or organizations…
Q: The following data is provided for Garcon Company and Pepper Company for the year ended December 31.…
A: All costs and expenses which are directly associated with the creation of goods are included while…
Q: The grinding machines are potentially the constraint in the production facility. A total of 52,400…
A: Lets understand the basics.For calculating grinding minutes required, we need to use below…
Q: Crane Company accumulates the following data concerning a mixed cost, using units produced as the…
A: The high-low method is used to separate the fixed and variable costs from the mixed costs of…
Q: Whitman Company has just completed its first year of operations. The company's absorption costing…
A: These are the two methods of costing system. Under absorption costing, variable costs as well as…
Q: Ledger Use the drop-downs to select the accounts properly included on the income st or post-closing…
A: An income statement shows the amount of profit or loss generated by a business over a certain period…
Q: Liquidating Partnerships Prior to liquidating their partnership, Perkins and Ericson had capital…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal…
A: The cash receipts schedule is prepared to estimate the cash collection from the customers during the…
Q: Assume that a company provided the following information and assumptions from its master budget:…
A: Lets understand the basics.Management prepares budget in order to estimate future estimations.The…
Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…
A: Notes payable is a financial instrument used to raise funds for financial obligations. Interest is…
Q: Woodley Company reports the following contribution margin income statement. Woodley Company…
A: A financial statement known as a contribution margin income statement displays each product or…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Sequola Furniture Company's sales over the past three months, half of which are for cash, were as…
A: Cash budget is also a part of Master budget which is used to estimate the expected cash receipt and…
Q: Required: Prepare the journal entry to replenish the fund at the end of September. Note: If no…
A: Petty cash is a nominal sum which is preserved in hand to cover minor expenses, such as…
Q: Floatin Away Company has three employees-a consultant, a computer programmer, and an administrator.…
A: Payroll is the method used to determine and pay employees for the job they have completed while…
Q: onda Corporation uses a job order cost system. On April 1, the accounts had balances as shown in the…
A: A job Costing System is a costing system where work is assigned to an individual and the costs are…
Q: Jones Corporation applies manufacturing overhead on the basis of direct labor- hours. Jones based…
A: UNDERAPPLIED MANUFACTURING OVERHEADUnderapplied Manufacturing OH is Occurs when Applied…
Q: Martinez Co. borrowed $54,000 on March 1 of the current year by signing a 60-day, 7%,…
A:
Q: 3. Prepare the company's income statement for 20x1. TAQUITOS TO GO Income Statement For the Year…
A: Net incomeNet income is the amount that is left after the deduction of all the expenses from the…
Q: Cash flow from financing activities is affected by: Select one: O O O a. issuing or reacquiring…
A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…
Q: Problem 6-1A Calculate ending inventory and cost of goods sold for four inventory methods (LO6-3)…
A: Inventory is one of important asset being used in business. Under weighted average method, cost of…
Q: Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.…
A: Ordinary income includes all those incomes that are taxable at ordinary rates such as salary,…
Q: ABC Company uses double declining balance deprecistion method. The compury purchused machinery on…
A: Estimated Useful Life8 yearsDouble declining balance depreciation rate (2* 1 / useful life) (2 * 1…
Q: Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the…
A: Conversion cost is the cost of converting the raw material into the finish goods. It is related to…
Q: Inventory Errors 1. On December 31, ABC Company counted and recorded $500,000 of inventory. This…
A: FOB shipping pointFOB shipping point is the shipping term and it means that sales occur at a point…
Q: Traffic Busters, Inc. delivers documents and other small items to intercity offices via bicycle…
A: Unadjusted trial balance preparation is one of the step in whole accounting process. This trial…
Q: A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000,…
A: Fixed Costs are the cost that does not change with the change in the output. It remains the same…
Q: spending variance for medical supplies in November would be closest to: Multiple Choice $805 F $805…
A: The spending variance is the difference between the actual and flexible budget data. The variance is…
Q: Extreme Manufacturing Company provides the following ABC costing information: Activities Account…
A: Activity Based Costing Is a Method That Assigns Total Overhead Costs To Products Based On The…
Q: For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation’s…
A: A contingent liability is a prospective obligation that may exist in the future as a result of a…
Q: For Dear Orleans Restaurant, the gross earnings of its employees total $14,000 and deductions total…
A: There are various deductions required to be made from the salary of an employee like, federal income…
Q: Required: Indicate how each of the transaction would be classified on a statement of cash flows.…
A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…
Q: Entries for uncollectible receivables, using allowance method Journalize the following transactions…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy…
A: Income Statement-It depicts the company's performance over a specific time period, with sales…
Q: le an war
A: The phaseout for 2022 is $340,100 for married taxpayers and $170,050 for all other taxpayers. 2022…
Q: Question 3 (12 marks) Grass & Go Ltd produce two models of petrol lawnmowers, Standard and Deluxe.…
A: The overhead allocation an important managerial activity to find the product cost. The…
Q: Xavier, who is a partner in SYZ Floral Delivery, negligently drove the delivery truck off the road ,…
A: Liability of the firm for acts of the partner If a partner does an act in ordinary course of…
kk.3
Step by step
Solved in 3 steps
- A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Bounce Back Insurance Company carries three major lines of insurance: auto, workers compensation, and homeowners. The company has prepared the following report: Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity-base usage data for each line of insurance were retrieved from the corporate records as follows: a. Complete the product profitability report through the administrative activities. Determine the operating income as a percent of premium revenue, rounded to the nearest whole percent. b. Interpret the report.Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated $ IT IT 0 25 $ 159,000 Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. HR 1,100 0 $ 247,500 0 $ HR Publishing 1,100 33 $ 430,000 0 $ Publishing Binding 3,300 49 $ 390,000 0.00 $ Binding 0.00
- Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated IT IT 0 33 $ 157,000 HR HR 1,500 0 $ 247,500 Publishing 1,500 41 $ 430,000 Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be Indicated by a minus sign. Do not round Intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. Binding Publishing 4,500 57 $ 390,000 AL BindingWoodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. IT Required A HR 1,200 0 0 16 $ 152,000 $ 249,600 Required: Use the step method to allocate the service costs, using the following: Required B Publishing 1,200 24 $430,000 Complete this question by entering your answers in the tabs below. X Answer is not complete. Use the step method to allocate the service costs, using the following: Binding Return to question 3,600 40 $ 390,000Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. IT HR 0 16 1,525 0 Publishing 2,440 24 $ 152,000 $ 247,950 $ 431,000 Binding 2,135 40 $ 392,500 Woodstock Binding estimates that the variable costs in the IT Department total $112,500, and in the HR Department variable costs to $142,500. Avoidable fixed costs in the IT Department are $18,250. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. × Answer is complete but not entirely correct. Maximum…
- Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: \table[[,IT,HR,Publishing,Binding],[,0,1,550,2,480,2,170],[IT tickets,16,0,24,40],[\table[[Employees],[Department direct costs]],$154,000,$248,400,$432,000,$395,000Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs IT HR e 16 1,550 0 Publishing 2,480 Binding 2,170 24 40 $ 154,000 $ 248,400 $ 432,000 $395,000 es Woodstock Binding estimates that the variable costs in the IT Department total $115,000, and in the HR Department variable costs total $145,000. Avoidable fixed costs in the IT Department are $18,500. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. Maximum amountWoodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Required: IT HR 0 27 1,400 0 Publishing 1,400 35 Binding 4,200 51 $ 151,000 $ 247,500 $ 430,000 $390,000 Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. Service department costs IT allocation IT HR Publishing Binding HR allocation Total costs allocated S 0 $ 0 S 0.00 5 0.00
- Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing.and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs From: Service department costs IT HR Total $ IT IT 0 20 $ 156,800 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. 39,200 39,200 0x HR 1,585 0 $ 249,030 Answer is not complete. $ Cost Allocation To: HR Publishing 2,536 30 $ 433,400 0 0X 0 Publishing $ 0x 74,709 x 74,709 Binding 2,219 50 $ 398,500 $ Binding 0 x 124,515 124,515Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT HR Publishing Binding IT tickets 0 1,700 1,700 5,100 Employees 16 0 24 40 Department direct costs $ 156,000 $ 266,200 $ 430,000 $ 390,000 Required: Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. The order of allocation starts with HR.Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs IT HR 0 16 1,500 0 Publishing 2,400 24 Binding 2,100 40 $ 150,000 $ 247,500 $ 430,000 $ 390,000 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with IT. b. The order of allocation starts with HR. Complete this question by entering your answers in the tabs below. Required A Required B Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round…