1. Bradford Company has two service departments, Human Resources and Janitorial, and two production departments, Cutting and Glazing. The following data have been estimated for next years operations:

Department:	Direct Charges	Number of Employees	Square Footage
Human Resources	$360,000	6	15,000
Janitorial	$280,000	8	20,000
Cutting	$428,000	42	25,000
Glazing	$562,000	40	35,000

Requirements:

(1) Distribute the service department costs using the sequential distribution method. Distribute the Human Resources Department first. (24 points/3 points each)

(2) Prepare the journal entries to distribute the costs of the service departments to the production departments given the results of your calculations. (16 points/8 points each)

ANS:

(1) Sequential Distribution Method:

	Human Resources	Janitorial	Cutting	Glazing	Total
Total direct charges	$360,000	$280,000	$428,000	$562,000	$1,630,000
HR distribution (number of employees) Janitorial Cutting Glazing
Janitorial distribution (sq. ft.) Cutting Glazing
Total

(2)