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StudentSol124e (2)

# StudentSol124e (2) - 12-23 Requirements How much of the...

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12-23 Requirements How much of the joint cost should be allocated to each joint product using the net realizable value method? Solution

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Product A Product B Total Sales Value at Split-Off Percentage of Total NRV Allocated Joint Cost Plus: Separable Costs Total Costs
12-25 Requirements 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B? Solution

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12-27 Requirements 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method. Solution

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12-28 Requirements 1. What are the costs allocated to the two production departments from the two service departments using (a) the direct method (b) the step method (both possible sequences), and (c) the reciprocal method? 2. The company is considering outsourcing programming services to RJB Services, Inc., for \$25.00 per hour. Sould Williams do this? Solution
12-29 Requirements 1. What are the costs allocated to the two production departmets using (a) the direct method, (b) the step method with the sourcing department going first, and (c) the reciprocal method? 2. What are the total costs in the production departments after allocation? Support Departments Producing Departments Direct Method Sourcing Operations Assembly Finishing DEPARTMENTAL ALLOCATION BASES Sourcing percent Operations percent FIRST PHASE: Trace Direct Costs and Perform Initial Allocation of Indirect Costs Totals for All Departments SECOND PHASE: Reallocate Service Department Costs to Production Departments: The Direct Method Sourcing Service % to producing departments Allocation % per the direct method Allocation amount Operations

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