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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: Departmental
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: Departmental costs before allocations Employee-hours Space occupied-square feet Service Departments Administration Janitorial $200,000 $70,000 500 340 800 1,000 Operating Departments Groceries Gifts $3,870,000 $340,000 2,690 170 9,500 500 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 whole dollar amount.) Service Departments Administration Janitorial $ 200,000 $ 70,000 Operating Departments Groceries Gifts $ 3,870,000 $ 340,000 Total 4,480,000 $ Departmental costs before allocations Allocation: Administration costs Janitorial costs Total costs after allocation $ 200,000 $ 70,000 $ 3,870,000 $ 340,000 $ 4,480,000 Clonex Labs, Inc., uses the weighted average method in its process costing system. The following data are available for one department for October Percent Completed Materials Conversion 85% 60% 74% 48 % Units 51,000 39,000 Work in process, October 1 Work in process, October 31 The department started 396,000 units into production during the month and transferred 408,000 completed units to the next department Required: Compute the equivalent units of production for October. Materials Conversion Equivalent units of production
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