1.

Carolina Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

				Proportion of Services Used by:
Department	Direct costs			S1		S2		P1		P2
S1	$	72,000				0.70		0.10		0.20
S2	$	157,000		0.20				0.30		0.50
P1	$	214,000
P2	$	179,000

Under the direct-method of cost allocation, the amount of S1 costs allocated to P1 would be:

2.

Carolina Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:

				Proportion of Services Used by:
Department	Direct costs			S1		S2		P1		P2
S1	$	78,000				0.70		0.10		0.20
S2	$	127,000		0.20				0.30		0.50
P1	$	229,000
P2	$	217,000

Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be:

3. Products X, Y, and Z are produced from the same process at a cost of $5,200. Five thousand pounds of raw material yields 1,500 X, 2,500 Y, and 1,000 Z. Selling prices are: X $2 per unit, Y $4 per unit, Z valueless. The ending inventory of X is 50 units. What is the value of the ending inventory if joint costs are allocated using net realizable value?