Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations: Operating

Madison Park Co-op, a whole foods grocery and gift shop, has provided the following data to be used in its service department cost allocations:

image text in transcribed

Operating Departments Groceries Service Departments AdministrationJanitorial $ 50,000 340 1,100 Gifts Departmental costs before allocations Employee-hours Space occupied-square feet S 200,000 490 1,000 $3,850,000 $ 330,000 180 900 2,680 9,100 Required Using the step-down method, allocate the costs of the service departments to the two operating departments. Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Service Departments Operating Departments Groceries Administration Janitorial Gifts Total 330,000 S 4,430,000 Departmental costs before allocations Allocation S 200,000 S 50,000$3.850,000 S Administration costs Janitorial costs Total costs after allocation 200,000 S 50,000$3.850,000 S 330,000 4,430,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

25.0 m C B A 52.0 m 65.0 m

Answered: 1 week ago

Question

How did you feel about taking piano lessons as a child? (general)

Answered: 1 week ago