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Forestland Wood Products manufactures lumber and wood components. The company has two main product lined: Hardixood and 50 ftwood. Hardwoeds are used for fiooring. cabinetry,

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Forestland Wood Products manufactures lumber and wood components. The company has two main product lined: Hardixood and 50 ftwood. Hardwoeds are used for fiooring. cabinetry, paneling, doors and trimwork, Softwoods are used foc wall studs, Jolsts, planks, rafters, beans, gtringers, posts, decking, subflooring and concrete forms. Forestland also sells a by -product, wood shavings and saw dugt. Shavings are purchased for farm and industrial vise as wed as for further processing into wood peliets and fiber board. The revertie is alliocated to each product line based on the percentage of thousand board feet produced by the oroduct line. Your accounting firm has been retained by Foresteand for three years. You haye been as signed to progerly alocate support depaitment costs. Your manager wants the allocation to be as accurate as possible and bas listructed you to use the reciprecal services method. She reminds you that revenue from by products are used to oliset costs. You begin your research and learn that there are four production departments: log yard, milling, dryino, and packaging. The Hardwood line produces a00 thousand board feet of product whlle the Softwood produces 900 thousand board feet. The miting department direct costs. difect tabst and ovethead per thousand board feet for Hardwood is two times that. of Softwood. You have been instructed to use the weighted average nsethod to allocate the costs in the rililing department between thei bro prodoct lines. The remaining department costs are the same for both product linesu per thousand board teet. dutes indude accounting, human rebources, and inforisation technology The cost driver for the adininistration department is number of employees. tables: our next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Comp ables. Solve the equations, If required round any decimal to three places in your computations. For excample, . . 183 would be rounided to .018, Round your final antwer to the neareit dollar. M=1 A=1 Use the folloming table to allocate the support cost departments. Pound alocated aniounts to the pearest whole doltar, if an amount is zero, enter "0?. Using the rounded amounts from the support cost allocation table (previous talk), complete the followino table to allocate the production department costs to each product line. ISing the rounded amounts from the support cost allocation table (preulous task), complete the following table to allocate the production department costs to each product line. finat cost ner product ine. Forest Land earns reverue of $100,000 from selling its by-prooucts, wood shavings and saw dust- Allocate the revenue to each product line in the following table and defermine the final cost per product line. Forestland Wood Products manufactures lumber and wood components. The company has two main product lined: Hardixood and 50 ftwood. Hardwoeds are used for fiooring. cabinetry, paneling, doors and trimwork, Softwoods are used foc wall studs, Jolsts, planks, rafters, beans, gtringers, posts, decking, subflooring and concrete forms. Forestland also sells a by -product, wood shavings and saw dugt. Shavings are purchased for farm and industrial vise as wed as for further processing into wood peliets and fiber board. The revertie is alliocated to each product line based on the percentage of thousand board feet produced by the oroduct line. Your accounting firm has been retained by Foresteand for three years. You haye been as signed to progerly alocate support depaitment costs. Your manager wants the allocation to be as accurate as possible and bas listructed you to use the reciprecal services method. She reminds you that revenue from by products are used to oliset costs. You begin your research and learn that there are four production departments: log yard, milling, dryino, and packaging. The Hardwood line produces a00 thousand board feet of product whlle the Softwood produces 900 thousand board feet. The miting department direct costs. difect tabst and ovethead per thousand board feet for Hardwood is two times that. of Softwood. You have been instructed to use the weighted average nsethod to allocate the costs in the rililing department between thei bro prodoct lines. The remaining department costs are the same for both product linesu per thousand board teet. dutes indude accounting, human rebources, and inforisation technology The cost driver for the adininistration department is number of employees. tables: our next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Comp ables. Solve the equations, If required round any decimal to three places in your computations. For excample, . . 183 would be rounided to .018, Round your final antwer to the neareit dollar. M=1 A=1 Use the folloming table to allocate the support cost departments. Pound alocated aniounts to the pearest whole doltar, if an amount is zero, enter "0?. Using the rounded amounts from the support cost allocation table (previous talk), complete the followino table to allocate the production department costs to each product line. ISing the rounded amounts from the support cost allocation table (preulous task), complete the following table to allocate the production department costs to each product line. finat cost ner product ine. Forest Land earns reverue of $100,000 from selling its by-prooucts, wood shavings and saw dust- Allocate the revenue to each product line in the following table and defermine the final cost per product line

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